US Durable Goods Orders Post Biggest Fall in Over a Year

New orders for US manufactured durable goods slumped 4.4 percent from a month earlier in October 2018, following a downwardly revised 0.1 percent decline in September and worse than market expectations of a 2.5 percent drop. It was the largest fall in durable goods orders since July 2017.
US Census Bureau | Joana Ferreira | joana.ferreira@tradingeconomics.com 11/21/2018 1:47:02 PM
Demand for transport equipment slumped 12.2 percent in October (vs 0.9 percent in September), led by nondefense aircraft and parts (-21.4 percent vs -19.3 percent) and defense aircraft and parts (-59.3 percent vs 117.1 percent) while orders for motor vehicles and parts rose (0.2 percent vs 0.9 percent). Demand also declined for primary metals (-2.3 percent vs -1.2 percent) and machinery (-0.5 percent vs 0.1 percent). Meanwhile, increases were recorded in orders for electrical equipment, appliances, and components (2.9 percent vs -0.8 percent), computers and electronic products (1.6 percent vs 0.5 percent), and fabricated metal products (1 percent vs -2.4 percent).

Excluding transportation, new orders edged up 0.1 percent (vs -0.6 percent in September). Excluding defense, new orders decreased 1.2 percent (vs -1.4 percent in September).

Shipments of manufactured durable goods in October, down following two consecutive monthly increases, decreased $1.4 billion or 0.6 percent to $254.5 billion. This followed a 1.0 percent September increase. Transportation equipment, also down following two consecutive monthly increases, drove the decrease, $1.6 billion or 1.8 percent to $87.6 billion.

Unfilled orders for manufactured durable goods in October, down following eight consecutive monthly increases, decreased $2.0 billion or 0.2 percent to $1,183.0 billion. This followed a 0.7 percent September increase. Transportation equipment, down following two consecutive monthly increases, drove the decrease, $2.9 billion or 0.4 percent to $815.1 billion.

Inventories of manufactured durable goods in October, down two of the last three months, decreased $0.1 billion or virtually unchanged to $410.9 billion. This followed a 0.8 percent September increase. Computers and electronic products, down three of the last four months, drove the decrease, $0.4 billion or 1.0 percent to $43.1 billion. 

Nondefense new orders for capital goods in October decreased $3.3 billion or 4.2 percent to $75.3 billion. Shipments decreased $1.9 billion or 2.4 percent to $77.4 billion. Unfilled orders decreased $2.1 billion or 0.3 percent to $715.5 billion. Inventories increased less than $0.1 billion or virtually unchanged to $180.1 billion. Defense new orders for capital goods in October decreased $2.3 billion or 16.6 percent to $11.5 billion. Shipments increased $0.3 billion or 2.9 percent to $12.1 billion. Unfilled orders decreased $0.6 billion or 0.4 percent to $153.4 billion. Inventories increased $0.1 billion or 0.3 percent to $22.8 billion.

US Durable Goods Orders Post Biggest Fall in Over a Year