Economy

Durable Goods Orders Slip 1.6 Percent

April 2, 2019

Durable goods orders fell 1.6 percent in February, according to the latest Department of Commerce report. Core capital goods orders, which exclude defense and aircraft and are considered a measure of business investment, slipped 0.1 percent after a revised increase of 0.9 percent in January.

Orders and shipments for primary metals and fabricated metal products increased slightly in February

Analysts suggest that the economy is losing momentum as tax cut benefits fade and global trade tensions increase.

The February advance report on manufacturers’ shipments, inventories and orders follows:

New Orders

New orders for manufactured durable goods in February decreased $4.2 billion or 1.6 percent to $250.6 billion, reported the U.S. Census Bureau. This decrease, down following three consecutive monthly increases, followed a 0.1 percent January increase. Excluding transportation, new orders increased 0.1 percent. Excluding defense, new orders decreased 1.9 percent. Transportation equipment, also down following three consecutive monthly increases, drove the decrease by $4.3 billion or 4.8 percent to $86.0 billion.

Shipments

Shipments of manufactured durable goods in February, up three of the last four months, increased $0.5 billion or 0.2 percent to $258.6 billion. This followed a 0.4 percent January decrease. Computers and electronic products, up four of the last five months, led the increase by $0.3 billion or 1.1 percent to $28.0 billion.

Unfilled Orders

Unfilled orders for manufactured durable goods in February, down four of the last five months, decreased $3.6 billion or 0.3 percent to $1,177.6 billion. This followed a 0.1 percent January increase. Transportation equipment, also down four of the last five months, drove the decrease by $3.8 billion or 0.5 percent to $807.2 billion.

Inventories

Inventories of manufactured durable goods in February, up 25 of the last 26 months, increased $1.3 billion or 0.3 percent to $418.9 billion. This followed a 0.5 percent January increase. Transportation equipment, up five of the last six months, drove the increase by $1.3 billion or 1.0 percent to $134.1 billion.

Capital Goods

Nondefense new orders for capital goods in February decreased $5.0 billion or 6.3 percent to $74.5 billion. Shipments increased $0.5 billion or 0.6 percent to $78.9 billion. Unfilled orders decreased $4.4 billion or 0.6 percent to $705.7 billion. Inventories increased $0.5 billion or 0.3 percent to $183.6 billion. Defense new orders for capital goods in February decreased $0.4 billion or 3.4 percent to $12.2 billion. Shipments decreased $0.7 billion or 5.3 percent to $12.3 billion. Unfilled orders decreased $0.1 billion or 0.1 percent to $156.0 billion. Inventories decreased less than $0.1 billion or little changed to $22.9 billion.

Revised January Data

Revised seasonally adjusted January figures for all manufacturing industries were: new orders, $499.9 billion (revised from $500.5 billion); shipments, $503.2 billion (revised from $503.1 billion); unfilled orders, $1,181.3 billion (revised from $1,181.9 billion); and total inventories, $686.1 billion (revised from $685.7 billion).