U.S. durable goods orders were nearly flat in August, slowing from a +0.9% increase to virtually unchanged and reaching $338.6 billion. Transportation equipment orders declined 0.6%, led by a 4.3% drop in nondefense aircraft orders and a 0.6% decrease in motor vehicles and parts.
Core measures proved more resilient. Orders excluding transportation increased 0.3%, while orders excluding defense rose 0.1%, indicating that the weakness was concentrated rather than broad-based.
Business investment provided the strongest underlying signal. Core nondefense capital-goods orders excluding aircraft accelerated from +0.6% to +1.6% month over month. Shipments of the same category decelerated from +1.4% to +0.6%, while machinery and electrical equipment orders each gained 1.1%. Computers and related products advanced 1.5%, underscoring continued strength in equipment demand.
The report points more to transportation volatility than widespread manufacturing weakness. Total durable-goods shipments declined 0.2%, ending an eight-month streak of increases. Meanwhile, unfilled orders rose 0.6% and inventories increased 0.5% for an eleventh consecutive month. Strengthening core capital-goods orders suggest that underlying business investment demand remained firm despite the flat headline figure.
Data Summary
| Indicator | Previous | Current |
|---|---|---|
| Durable Goods Orders | +0.9% | Virtually unchanged |
| Orders Excluding Transportation | +0.7% | +0.3% |
| Orders Excluding Defense | +1.4% | +0.1% |
| Transportation Equipment Orders | +1.2% | -0.6% |
| Core Capital Goods Orders ex Aircraft | +0.6% | +1.6% |
| Core Capital Goods Shipments ex Aircraft | +1.4% | +0.6% |
| Durable Goods Shipments | +0.9% | -0.2% |
| Unfilled Orders | +0.6% | +0.6% |
| Inventories | +0.5% | +0.5% |
Although headline orders were unchanged at $338.6 billion, activity outside transportation was firmer. Core nondefense capital-goods orders excluding aircraft posted the clearest improvement, rising sharply to +1.6%.
Key Takeaways
- U.S. durable goods orders slowed from +0.9% to virtually unchanged in August.
- Transportation equipment orders fell 0.6%, including declines of 4.3% for nondefense aircraft and 0.6% for motor vehicles and parts.
- Orders excluding transportation increased 0.3%, showing that the slowdown was not broad-based.
- Core nondefense capital-goods orders excluding aircraft accelerated from +0.6% to +1.6%, the report’s strongest underlying signal.
- Core capital-goods shipments remained positive at +0.6%, down from +1.4% but consistent with firm business equipment investment.
- Machinery and electrical equipment orders each gained 1.1%, while computers and related products advanced 1.5%.
- Total durable-goods shipments declined 0.2%, ending eight consecutive monthly increases, with transportation the primary drag.
- Unfilled orders increased 0.6% and inventories rose 0.5%, indicating a still-substantial manufacturing pipeline.
- Overall, transportation volatility obscured continued resilience in U.S. business investment demand.
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