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.

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


US Census Bureau | Joana Ferreira | joana.ferreira@tradingeconomics.com
11/21/2018 1:47:02 PM