Economic News Blog
Posted by: Steven Kline, Jr. 9. January 2020

Durable Goods Orders Continue to Slide

New orders for real durable goods totaled $230,444 million in November, which was the lowest level of durable goods new orders since January 2018. Orders in November 2019 were down 7.6% from one year ago, marking the fastest rate of month-over-month contraction since July 2016. Also, this was the fourth month in a row of contraction and the ninth month of contraction out of the last 10. Three of the last four months have contracted faster than 6.0%. The result was that the annual rate of change contracted 3.4%, moving at a faster rate of contraction for the fourth-straight month. This was the fastest rate of annual contraction since July 2016.

Compared with one year ago, new orders for motor vehicles and parts contracted 6.9%. This was the fourth consecutive month of month-over-month contraction and the fastest rate of contraction since July 2016. The annual rate of growth, now 1.3%, decelerated for the fifth month. This was the slowest rate of annual growth since March 2018.

Aerospace orders decreased 47.1% in November, contracting more than 40% for fifth time in seven months. The annual rate of contraction was 30.3%, which was the fastest rate of contraction since December 2015.

Accelerating Growth: 

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

Accelerating Contraction: aerospace, construction materials, durable goods, fabricated metal products, machinery/equipment, off-road/construction machinery,  primary metals, ship/boat building, total capital goods

Decelerating Contraction: appliances, oil/gas-field/mining machinery

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