Economic News Blog
Posted by: Steven Kline, Jr. 7. October 2019

New Orders in Durable Goods Contract Once Again in August

New orders for real durable goods totaled $254,051 million in August, which was down 6.4% from one year ago. Durable goods new orders contracted for the sixth time in seven months, and the rate of month-over-month contraction has accelerated. The result was that the annual rate of change contracted 1.2%, contracting for the first time since May 2017. 

Compared with one year ago, new orders for motor vehicles and parts contracted 2.6%. That was the first month of month-over-month contraction since May 2018. The annual rate of growth, now 4.4%, decelerated for the second month. This was the slowest rate of annual growth since September 2018

While aerospace orders grew 11.0% last month, they contracted 42.5% in August compared with one year ago. Aerospace orders contracted in eight out of the last 10 months, and they contracted more than 20% in six out of the last seven months. The annual rate of contraction accelerated for the sixth month in a row, hitting 20.1% in August. Annually, non-defense orders continued to contract while defense orders continued to grow. 

Accelerating Growth: 

Decelerating Growth: computers/electronics, fabricated metal products, HVAC, motor vehicle/parts, power generation

Accelerating Contraction: aerospace,construction materials, durable goods, machinery/equipment, off-road/construction machinery, oil/gas-field/mining machinery, primary metals, ship/boat building, total capital goods

Decelerating Contraction:  appliances

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