New orders for manufactured durable goods in October decreased 3.3 percent to $196.0 billion, according to the U.S. Census Bureau. This decrease, down two of the last three months, followed a 5 percent September increase. Excluding transportation, new orders decreased 2.7 percent. Excluding defense, new orders decreased 2.1 percent.
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Transportation equipment, also down two of the last three months, had the largest decrease, $2.9 billion or 5.2 percent to $52.3 billion. This was led by defense aircraft and parts, which decreased $1.6 billion.
Shipments of manufactured durable goods in October, also down two of the last three months, decreased $1.8 billion or 0.9 percent to $196.8 billion. This followed a 0.1 percent September increase. Machinery, down following two consecutive monthly increases, had the largest decrease, $0.9 billion or 3.6 percent to $24.6 billion.
Unfilled orders for manufactured durable goods in October, up nine of the last ten months, increased $5.4 billion or 0.7 percent to $821.9 billion. This followed a 1.4 percent September increase. Transportation equipment, up two consecutive months, had the largest increase, $3.7 billion or 0.8 percent to $484.2 billion.
\”The October 2010 report on new orders for capital goods confirms a deceleration in the rate of growth all across the board of long lasting manufactured goods,\” said Thomas Duesterberg, president and CEO of the Manufacturers Alliance/MAPI. \”While the year over year data is still strong – new orders are up almost 15 percent – recent trends show that the rapid inventory accumulation that help drive up the rate of growth is clearly slowing. The overall trend in capital investment, driven largely by replacement of old equipment, is also showing signs of a pause. Looking ahead, further growth will have to be driven by improvements in exports and in capital investment, which in turn could be stimulated by a better jobs picture and stability in the tax environment.\”
Inventories of manufactured durable goods in October, up ten consecutive months, increased $1.3 billion or 0.4 percent to $316.7 billion. This followed a 0.7 percent September increase. Machinery, up eight consecutive months, had the largest increase, $0.4 billion or 0.7 percent to $52.4 billion.
Nondefense new orders for capital goods in October decreased $3.3 billion or 4.5 percent to $70.8 billion. Shipments decreased $0.4 billion or 0.6 percent to $64.7 billion. Unfilled orders increased $6.1 billion or 1.2 percent to $503.9 billion. Inventories increased $0.8 billion or 0.6 percent to $134.5 billion.
Defense new orders for capital goods in October decreased $2.2 billion or 21.3 percent to $8.3 billion. Shipments decreased $0.7 billion or 7.4 percent to $9.0 billion. Unfilled orders decreased $0.8 billion or 0.5 percent to $139.9 billion. Inventories increased 0.1 percent to $17.4 billion.
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