US Durable Goods Rise More Than Expected

New orders for US manufactured durable goods jumped 4.8 percent month-over-month in October of 2016, following an upwardly revised 0.4 percent gain in September and beating market expectations of a 1.5 percent increase. It is the biggest gain since October last year, mainly boosted by a 12 percent surge in transport equipment. Excluding transportation, new orders increased 1 percent and excluding defense, new orders went up 5.2 percent. Non-defense capital goods orders excluding aircrafts, a proxy for business spending increased 0.4 percent.
US Census Bureau | Joana Taborda | joana.taborda@tradingeconomics.com 11/23/2016 1:45:05 PM
Transportation equipment, also up four consecutive months, led the increase, $9.5 billion or 12.0 percent to $88.2 billion. 

Shipments of manufactured durable goods in October, up four of the last five months, increased $0.2 billion or 0.1 percent to $234.6 billion. This followed a 0.8 percent September increase. Fabricated metal products, up three of the last four months, drove the increase, $0.3 billion or 1.1 percent to $30.5 billion. 

Unfilled orders for manufactured durable goods in October, up following four consecutive monthly decreases, increased $8.2 billion or 0.7 percent to $1,128.6 billion. This followed a 0.2 percent September decrease. Transportation equipment, also up following four consecutive monthly decreases, led the increase, $7.5 billion or 1.0 percent to $773.1 billion.

Inventories of manufactured durable goods in October, up four consecutive months, increased $0.1 billion or virtually unchanged to $383.7 billion. This followed a virtually unchanged September increase. Transportation equipment, up three of the last four months, drove the increase, $0.2 billion or 0.2 percent to $123.8 billion.

Nondefense new orders for capital goods in October increased $10.2 billion or 14.5 percent to $80.1 billion. Shipments decreased $0.4 billion or 0.6 percent to $71.5 billion. Unfilled orders increased $8.7 billion or 1.3 percent to $703.1 billion. Inventories decreased $0.6 billion or 0.4 percent to $169.6 billion. Defense new orders for capital goods in October decreased $0.4 billion or 3.7 percent to $10.8 billion. Shipments increased $0.3 billion or 2.9 percent to $10.6 billion. Unfilled orders increased $0.2 billion or 0.1 percent to $138.7 billion. Inventories increased $0.4 billion or 1.9 percent to $21.2 billion. 

US Durable Goods Rise More Than Expected