US Durable Goods Orders Fall The Most In Over 2 Years

New orders for US manufactured durable goods decreased by 4.6 percent month-over-month in November 2016, following a 4.8 percent gain in October and slightly better than market expectations of a 4.7 percent fall. It was the first decline in five months and the sharpest drop since August 2014, mainly dragged by transport equipment orders.
US Census Bureau | Joana Ferreira | joana.ferreira@tradingeconomics.com 12/22/2016 1:45:28 PM
Excluding transportation, new orders increased 0.5 percent and excluding defense, new orders went down 6.6 percent. Non-defense capital goods orders excluding aircraft, a proxy for business spending, increased by 0.9 percent.

Transportation equipment, also down following four consecutive monthly increases, drove the decrease, $11.7 billion or 13.2 percent to $76.6 billion.

Shipments of manufactured durable goods in November, up two of the last three months, increased $0.2 billion or 0.1 percent to $234.2 billion. This followed a 0.1 percent October decrease. Primary metals, also up two of the last three months, drove the increase, $0.3 billion or 1.7 percent to $18.0 billion.

Unfilled orders for manufactured durable goods in November, down five of the last six months, decreased $2.3 billion or 0.2 percent to $1,126.7 billion. This followed a 0.8 percent October increase. Transportation equipment, also down five of the last six months, drove the decrease, $3.6 billion or 0.5 percent to $769.8 billion.

Inventories of manufactured durable goods in November, up four of the last five months, increased $0.6 billion or 0.1 percent to $384.0 billion. This followed a virtually unchanged October decrease. Transportation equipment, also up four of the last five months, led the increase, $0.3 billion or 0.2 percent to $124.1 billion.

Nondefense new orders for capital goods in November decreased $15.6 billion or 19.5 percent to $64.4 billion. Shipments decreased $0.9 billion or 1.2 percent to $70.3 billion. Unfilled orders decreased $5.9 billion or 0.8 percent to $697.1 billion. Inventories increased $0.5 billion or 0.3 percent to $170.1 billion. Defense new orders for capital goods in November increased $3.2 billion or 29.1 percent to $14.3 billion. Shipments increased $0.3 billion or 2.9 percent to $11.0 billion. Unfilled orders increased $3.3 billion or 2.4 percent to $142.2 billion. Inventories decreased $0.2 billion or 1.1 percent to $20.9 billion.

US Durable Goods Orders Fall The Most In Over 2 Years