Economy
Surprise Decline for Durable Goods Orders
Written by Sandy Williams
October 28, 2014
Durable goods orders unexpectedly fell 1.3 percent in September for a second consecutive monthly decline. The drop follows a tumble of 18.3 percent in August. Economists were forecasting a gain of 0.5 percent for September.
The disappointing performance may lead economists to revise forecasts for the third quarter GDP scheduled for release on Thursday. Current forecasts anticipate a 3 percent annualized rate for third quarter after a strong 4.6 percent gain in second quarter.
The Census Bureau press release issued today read as follows:
New orders for manufactured durable goods in September decreased $3.2 billion or 1.3 percent to $241.6 billion, the U.S. Census Bureau announced today. This decrease, down two consecutive months, followed an 18.3 percent August decrease. Excluding transportation, new orders decreased 0.2 percent. Excluding defense, new orders decreased 1.5 percent.
Transportation equipment, also down two consecutive months, led the decrease, $2.8 billion or 3.7 percent to $73.4 billion.
Shipments of manufactured durable goods in September, up three of the last four months, increased$0.1 billion or 0.1 percent to $245.6 billion. This followed a 1.8 percent August decrease. Fabricated metal products, up eight of the last nine months, drove the increase, $0.2 billion or 0.6 percent to $30.5 billion.
Unfilled orders for manufactured durable goods in September, up seventeen of the last eighteen months, increased $3.8 billion or 0.3 percent to $1,168.7 billion. This was at the highest level since the series was first published on a NAICS basis in 1992 and followed a 0.6percent August increase.
Transportation equipment, up twelve of the last thirteen months, led the increase, $1.0 billion or 0.1 percent to $742.7 billion.
Inventories of manufactured durable goods in September, up seventeen of the last eighteen months, increased $1.8 billion or 0.4 percent to $404.8 billion. This was at the highest level since the series was first published on a NAICS basis and followed a 0.4 percent August increase. Transportation equipment, also up seventeen of the last eighteen months, led the increase, $1.0 billion or 0.8percent to $130.9 billion.
Non-defense new orders for capital goods in September decreased $4.6 billion or 5.4 percent to $82.0 billion. Shipments increased $0.4 billion or 0.5 percent to $80.2billion. Unfilled orders increased $1.8 billion or 0.2percent to $733.3 billion. Inventories increased $1.1billion or 0.6 percent to $184.9 billion.
Defense new orders for capital goods in September increased $0.6 billion or 7.4 percent to $9.4 billion. Shipments decreased $0.1 billion or 1.3 percent to $9.7billion. Unfilled orders decreased $0.3 billion or 0.2percent to $157.8 billion. Inventories decreased $0.3billion or 1.2 percent to $23.6 billion.
Revised seasonally adjusted August figures for all manufacturing industries were: new orders, $502.2billion (revised from $502.0 billion); shipments, $502.8billion (revised from $503.1 billion); unfilled orders, $1,164.9 billion (revised from $1,164.5 billion).
Below is an interactive graphic of Durable Goods, but it can only be seen when you are logged into the website and reading the newsletter online. If you need any assistance logging in or navigating the website, contact us at info@SteelMarketUpdate.com or 800-432-3475.
{amchart id=”119″ Durable Goods Shipments and New Orders 3MMA}
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Metalformers expect steady conditions in coming months
Metalformers expect economic activity to stabilize over the next three months, according to the recently released July Business Conditions Report from the Precision Metalforming Association (PMA).
Architecture Billings Index rises from 4-year low in June
The Architecture Billings Index (ABI) ticked up in June following May’s four-year low, according to the American Institute of Architects (AIA) and Deltek. While the index improved this month, it continues to indicate weak business conditions among architecture firms.
Beige Book: Uncertainty to continue fueling slower economic growth
Growth in the US economy continues to be constrained. The Federal Reserve’s Beige Book report for July shows more areas reporting flat or declining economic activity than in its previous report at the end of May.
AISI, AISC, University of Massachusetts get ~$6.4M EPA grant
The American Iron and Steel Institute (AISI), American Institute of Steel Construction (AISC), and the University of Massachusetts at Amherst have received a grant to enhance emissions reporting for steel construction projects.
Manufacturing activity in New York state continues to soften
New York state saw a continued decline in manufacturing activity in July, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.