New orders for manufactured durable goods in August decreased 0.1 percent to $201.8 billion, according to an advance report from the U.S. Census Bureau. This decrease, down two of the last three months, followed a 4.1 percent July increase.
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Excluding transportation, new orders decreased 0.1 percent. Excluding defense, new orders decreased 0.1 percent. Primary metals, down following five consecutive monthly increases, had the largest decrease, $0.2 billion or 0.8 percent to $24.2 billion.
Shipments of manufactured durable goods in August, down following three consecutive monthly increases, decreased $0.4 billion or 0.2 percent to $201.0 billion. This followed a 2.1 percent July increase. Transportation equipment, down following two consecutive monthly increases, had the largest decrease, $2.3 billion or 4.6 percent to $47.1 billion.
Unfilled orders for manufactured durable goods in August, up sixteen of the last seventeen months, increased $7.6 billion or 0.9 percent to $878.6 billion. This followed a 0.9 percent July increase. Transportation equipment, up eight consecutive months, had the largest increase, $6.0 billion or 1.2 percent to $507.6 billion.
Inventories of manufactured durable goods in August, up twenty consecutive months, increased $3.2 billion or 0.9 percent to $365.3 billion. This was at the highest level since the series was first published on a NAICS basis in 1992 and followed a 1.1 percent July increase. Transportation equipment, also up twenty consecutive months, had the largest increase, $1.4 billion or 1.3 percent to $112.3 billion.
Nondefense new orders for capital goods in August increased $3.9 billion or 5.2 percent to $78.1 billion. Shipments increased $1.9 billion or 2.7 percent to $71.3 billion. Unfilled orders increased $6.7 billion or 1.3 percent to $516.9 billion. Inventories increased $1.9 billion or 1.1 percent to $166.8 billion. Defense new orders for capital goods in August decreased $0.5 billion or 5.7 percent to $7.7 billion. Shipments increased $0.2 billion or 2.9 percent to $7.5 billion. Unfilled orders increased $0.2 billion or 0.1 percent to $151.5 billion. Inventories increased $0.1 billion or 0.7 percent to $20.6 billion.
\”A 1.1 percent increase in new orders for nondefense capital goods, excluding aircraft, a proxy for business equipment spending, suggests that – while sluggish – capital spending has been strong enough to keep a troubled U.S. economy from sliding into what could be a difficult and damaging new recession,\” says Cliff Waldman, economist for the Manufacturers Alliance/MAPI. \”It was especially encouraging to see at least a modest degree of energy in capital investment during a month that featured many assaults on business and consumer confidence, from a debilitating debate on the U.S. debt ceiling to suggestions that the Eurozone sovereign debt quagmire was spinning out of policymakers’ control.\”
