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Durable Goods Orders Decrease 13.2% in August; Largest Decline Since 2009

September 28, 2012, 06:47 AM
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Topic: Economy

New orders for manufactured durable goods in August decreased $30.1 billion or 13.2 percent to $198.5 billion, according to the U.S. Census Bureau.  This decrease, down following three consecutive monthly increases, was the largest decrease since January 2009 and followed a 3.3 percent July increase. Excluding transportation, new orders decreased 1.6 percent. Excluding defense, new orders decreased 12.4 percent.

Transportation equipment, down following four consecutive monthly increases, had the largest decrease, $27.8 billion or 34.9 percent to $51.9 billion.

Shipments

Shipments of manufactured durable goods in August, down two of the last three months, decreased $6.8 billion or 3.0 percent to $222.5 billion. This was also the largest decrease since January 2009 and followed a 1.9 percent July increase. Transportation equipment, down two of the last three months, had the largest decrease, $5.5 billion or 7.9 percent to $63.9 billion. This followed a 7.9 percent July increase.

Unfilled Orders

Unfilled orders for manufactured durable goods in August, down following two consecutive monthly increases, decreased $16.9 billion or 1.7 percent to $978.7 billion. This was the largest decrease since December 2009 and followed a 0.7 percent July increase.

Transportation equipment, also down following two consecutive monthly increases, had the largest decrease, $12.0 billion or 2.1 percent to $568.6 billion.

Inventories

Inventories of manufactured durable goods in August, up thirty-one of the last thirty-two months, increased $2.2 billion or 0.6 percent to $371.6 billion. This was at the highest level since the series was first published on a NAICS basis in 1992 and followed a 0.8 percent July increase.

Transportation equipment, also up thirty-one of the last thirty-two months, had the largest increase, $1.6 billion or 1.4 percent to $112.1 billion. This was also at the highest level since the series was first published on a NAICS basis.

Capital Goods

Nondefense new orders for capital goods in August decreased $18.5 billion or 24.3 percent to $57.7 billion. Shipments decreased $1.2 billion or 1.7 percent to $69.5 billion. Unfilled orders decreased $11.9 billion or 2.0 percent to $580.5 billion. Inventories increased $1.5 billion or 0.9 percent to $171.9 billion.

Defense new orders for capital goods in August decreased $4.1 billion or 40.1 percent to $6.1 billion. Shipments decreased $0.1 billion or 1.7 percent to $8.1 billion. Unfilled orders decreased $2.0 billion or 1.2 percent to $165.6 billion. Inventories increased $0.4 billion or 1.8 percent to $21.4 billion.

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