Economy

Durable Goods Orders Dip 0.1% in September

October 27, 2016

Orders for durable goods declined 0.1 percent in September after August orders were revised to a 0.3 percent increase. Economists had expected an increase in orders of between 0.1 and 0.2 percent. Volatility in the transportation equipment sector continued with orders decreasing 0.8 percent after two consecutive monthly increases. Excluding transportation, new orders were up 0.2 percent; excluding defense, orders were up 0.7 percent. Orders for core capital goods, a proxy for business investment, fell 1.2 percent in September. The report from the Commerce Department follows:

New Orders
New orders for manufactured durable goods in September decreased $0.3 billion or 0.1 percent to $227.3 billion, the U.S. Census Bureau announced today. This decrease, down following two consecutive monthly increases, followed a 0.3 percent August increase. Excluding transportation, new orders increased 0.2 percent. Excluding defense, new orders increased 0.7 percent.

Transportation equipment, also down following two consecutive monthly increases, drove the decrease, $0.6 billion or 0.8 percent to $77.5 billion.

Shipments
Shipments of manufactured durable goods in September, up three of the last four months, increased $2.0 billion or 0.8 percent to $234.5 billion. This followed a virtually unchanged August decrease.

Transportation equipment, up following two consecutive monthly decreases, led the increase, $1.8 billion or 2.3 percent to $82.1 billion.

Unfilled Orders
Unfilled orders for manufactured durable goods in September, down four consecutive months, decreased $3.9 billion or 0.4 percent to $1,119.3 billion. This followed a 0.1 percent August decrease.

Transportation equipment, also down four consecutive months, drove the decrease, $4.6 billion or 0.6 percent to $764.2 billion.

Inventories
Inventories of manufactured durable goods in September, up three consecutive months, increased $0.5 billion or 0.1 percent to $384.0 billion. This followed a 0.1 percent August increase.

Machinery, up three of the last four months, led the increase, $0.3 billion or 0.5 percent to $66.0 billion.

Capital Goods
Nondefense new orders for capital goods in September increased $1.0 billion or 1.5 percent to $68.2 billion. Shipments increased $1.5 billion or 2.2 percent to $71.8 billion. Unfilled orders decreased $3.6 billion or 0.5 percent to $692.8 billion. Inventories increased $0.5 billion or 0.3 percent to $170.4 billion.

Defense new orders for capital goods in September decreased $0.9 billion or 7.7 percent to $11.3 billion. Shipments increased $0.1 billion or 0.8 percent to $10.4 billion. Unfilled orders increased $0.9 billion or 0.6 percent to $138.5 billion. Inventories decreased less than $0.1 billion or 0.2 percent to $20.8 billion.

Revised August Data
Revised seasonally adjusted August figures for all manufacturing industries were: new orders, $453.4 billion (revised from $453.1 billion); shipments, $458.4 billion (revised from $458.1 billion); unfilled orders, $1,123.2 billion (virtually unchanged); and total inventories, $621.6 billion (revised from $622.0 billion).

Below is a graph showing the history of Durable Goods shipments and new orders on a three month moving average basis. You will need to view the graph on our website to use its interactive features, you can do so by clicking here. If you need assistance logging into or navigating the website, please contact our office at 800-432-3475 or info@SteelMarketUpdate.com.