A 2.9 percent decline in transportation equipment spending also helped to weigh down overall orders for durable goods – items ranging from toasters to aircraft that are meant to last three years or more – which fell 1.2 percent last month. The majority of the decline was attributable to a 2.9 percent fall in new orders for transportation equipment. Shipments (+0.5% m/m), the actual data the BEA uses to estimate current investment in GDP, bounced back in September but were revised down to -0.8% m/m for August (initial: -0.4%).
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The manufacturing sector remains challenged with an elevated USA dollar and sluggish global demand.
Orders for non-defense aircraft and parts showed a steep 35.7 percent drop in September after falling by 11.2 percent in August.
In a positive sign for the auto industry, which is enjoying robust sales this year, motor vehicle orders almost reversed an August dip with 1.8 percent growth.
Transportation orders dropped for a second straight month, by 2.9 percent.
The September decline in orders for durable goods – manufactured products that typically last longer than three years – was in line with forecasts and followed a revised 3% drop in August.
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Stripping out numerous series that distort the headline figures on durable goods orders, readings on core capital goods through September continue to suggest headwinds for the USA manufacturing sector. Orders minus defense fell a larger 2%. Republication or redistribution of content provided by EconoTimes is expressly prohibited without the prior written consent of EconoTimes, except for personal and non-commercial use.
