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Durable goods orders stall in August as transport drives weakness

Core nondefense capital goods orders excluding aircraft accelerated to +1.6% month over month, offsetting a -0.6% drop in transportation equipment.

Reported · Written up by our desk · Economy

US durable goods orders lost momentum in August, slowing headline orders from +0.9% to virtually unchanged, with total orders at $338.6 billion, according to Action Forex.

The weakness was concentrated in transportation equipment, where orders fell -0.6%, including a -4.3% decline in nondefense aircraft and -0.6% in motor vehicles and parts.

Outside of transportation, orders rose +0.3%, while orders excluding defense increased +0.1%. Action Forex also pointed to business investment strength, noting nondefense capital goods orders excluding aircraft accelerated from +0.6% to +1.6% month over month.

The report showed durable-goods shipments slipping from +0.9% to -0.2%, while unfilled orders rose another +0.6% and inventories increased +0.5% for an eleventh consecutive month.

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