US Commerce Department data shows Durable Goods Orders declined 0.1% in September from August.

The headline reading is a bit stronger than it looks because the commerce department revised August new orders from +0.0% to +0.3%.

New Orders

New orders for manufactured durable goods in September decreased $0.3 billion or 0.1 percent to $227.3 billion. This decrease followed a 0.3 percent August increase. Excluding transportation, new orders increased 0.2 percent. Excluding defense, new orders increased 0.7 percent.

Shipments

Shipments of manufactured durable goods in September, up three of the last four months, increased $2.0 billion or 0.8 percent to $234.5 billion.

Inventories

Inventories of manufactured durable goods in September, up three consecutive months, increased $0.5 billion or 0.1 percent to $384.0 billion. This followed a
0.1 percent August increase.

Unfilled Orders

Unfilled orders for manufactured durable goods in September, down four consecutive months, decreased $3.9 billion or 0.4 percent to $1,119.3 billion. This
followed a 0.1 percent August decrease. Transportation equipment, also down four consecutive months, drove the decrease, $4.6 billion or 0.6 percent to $764.2 billion.

Capital Goods

Nondefense new orders for capital goods in September increased $1.0 billion or 1.5 percent to $68.2 billion. Shipments increased $1.5 billion or 2.2 percent to $71.8
billion. Unfilled orders decreased $3.6 billion or 0.5 percent to $692.8 billion. Inventories increased $0.5 billion or 0.3 percent to $170.4 billion.

Capital Goods are tangible assets such as buildings, machinery, equipment, vehicles and tools that an organization uses to produce goods or services in order to produce consumer goods and goods for other businesses.

Core Capital Goods

Core capital goods orders, a leading indicator of future growth, are defined as non-defense, non-aircraft capital goods orders.

Core capital orders fell 1.2% for the month following an august revision from +0.6% to +1.2%. Core capital orders are a measure of business investment.

Manufacturers New Orders Durable Goods

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Manufacturers New Orders Core Capital Goods

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Mike “Mish” Shedlock