New orders for manufactured durable goods in September increased $6.3 billion or 3.3 percent to $199.2 billion, according to the latest release from the U.S. Census Bureau. Up two of the last three months, this increase followed a 1 percent August decrease.
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Excluding transportation, new orders decreased 0.8 percent. Excluding defense, new orders increased 2.9 percent. Transportation equipment, also up two of the last three months, had the largest increase, $7.4 billion or 15.7 percent to $54.8 billion. This was due to nondefense aircraft and parts, which increased $6.6 billion.
Shipments of manufactured durable goods in September, down two consecutive months, decreased $0.9 billion or 0.4 percent to $197.4 billion. This followed a 1.4 percent August decrease. Computers and electronic products, down four of the last five months, had the largest decrease, $0.8 billion or 2.3 percent to $33.4 billion.
\”Business equipment spending remains an important source of growth for the economy,\” said Daniel J. Meckstroth, Ph.D., chief economist of the Manufacturers Alliance/MAPI. \”The breadth of the capital equipment rebound amid low utilization rates and sluggish economic growth shows that firms need to repair and replace equipment as production rebounds. In addition, postponed spending for high tech equipment has also come back faster than many in the industry expected.\”
Unfilled orders for manufactured durable goods in September, up six consecutive months, increased $7.9 billion or 1.0 percent to $813.2 billion. This followed a 0.1 percent August increase. Transportation equipment, up following four consecutive monthly decreases, had the largest increase, $5.8 billion or 1.2 percent to $480.0 billion.
Inventories of manufactured durable goods in September, up nine consecutive months, increased $1.7 billion or 0.5 percent to $314.7 billion. This followed a 0.6 percent August increase. Transportation equipment, also up nine consecutive months, had the largest increase, $1.2 billion or 1.5 percent to $82.7 billion.
Nondefense new orders for capital goods in September increased $5.7 billion or 8.6 percent to $71.9 billion. Shipments decreased $0.5 billion or 0.7 percent to $64.7 billion. Unfilled orders increased $7.2 billion or 1.5 percent to $496.0 billion. Inventories increased $1.8 billion or 1.3 percent to $133.0 billion.
Defense new orders for capital goods in September increased $0.8 billion or 8.0 percent to $10.1 billion. Shipments increased $0.5 billion or 5.7 percent to $9.7 billion. Unfilled orders increased $0.4 billion or 0.3 percent to $140.3 billion. Inventories decreased $0.1 billion or 0.5 percent to $17.5 billion.
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