US Durable Goods Unexpectedly Fall


New orders for US manufactured durable goods shrank 1.2 percent month-over-month in October of 2017, following a 2.2 percent increase in September and compared to market expectations of a 0.3 percent gain. Orders for transport equipment slumped 4.3 percent and those for nondefense aircraft and parts went down 18.6 percent, after jumping 4.4 percent and 33.9 percent respectively in September due to a rise in Boeing aircraft orders. Non-defense capital goods orders excluding aircraft, seen as a proxy for business spending plans went down 0.5 percent, the biggest drop since September of 2016 and following an upwardly revised 2.1 percent gain in the previous month.

Excluding transportation, new orders increased 0.4 percent. Excluding defense, new orders decreased 0.8 percent. 

Shipments of manufactured durable goods in October, up five of the last six months, increased $0.3 billion or 0.1 percent to $241.0 billion. This followed a 1.0 percent September increase. Primary metals, up three of the last four months, led the increase, $0.3 billion or 1.5 percent to $19.9 billion. 

Unfilled orders for manufactured durable goods in October, down three of the last four months, decreased $0.5 billion or virtually unchanged to $1,134.6 billion. This followed a 0.2 percent September increase. Transportation equipment, also down three of the last four months, drove the decrease, $2.0 billion or 0.3 percent to $769.7 billion.

Inventories of manufactured durable goods in October, up fifteen of the last sixteen months, increased $0.5 billion or 0.1 percent to $404.1 billion. This followed a 0.6 percent September increase. Primary metals, also up fifteen of the last sixteen months, led the increase, $0.1 billion or 0.4 percent to $33.9 billion. 

Nondefense new orders for capital goods in October decreased $3.4 billion or 4.5 percent to $72.3 billion. Shipments decreased $1.4 billion or 1.9 percent to $72.4 billion. Unfilled orders decreased $0.1 billion or virtually unchanged to $705.2 billion. Inventories increased less than $0.1 billion or virtually unchanged to $179.7 billion. Defense new orders for capital goods in October decreased $1.1 billion or 9.6 percent to $9.9 billion. Shipments increased $0.3 billion or 2.4 percent to $10.9 billion. Unfilled orders decreased $0.9 billion or 0.7 percent to $142.3 billion. Inventories increased $0.2 billion or 1.0 percent to $23.6 billion. 

US Durable Goods Unexpectedly Fall


US Census Bureau | Joana Taborda | joana.taborda@tradingeconomics.com
11/22/2017 1:39:41 PM