Last Update: 10-Oct-14 16:58 ET
- Durable goods orders fell 18.2% in August after increasing a slightly downwardly revised 22.5% (from 22.6%) in July. The Briefing.com consensus expected durable goods orders to fall 16.3%.
- Excluding transportation, durable goods orders increased 0.7% in August after declining an upwardly revised 0.5% (from -0.7%) in July. The Briefing.com consensus expected these orders to increase 0.7%.
- What goes up must come down. A surge in aircraft orders in July resulted in the largest monthly increase in overall durable goods last month. The normal payback period came immediately and resulted in the largest monthly decline in overall orders in August.
- Boeing (BA) reported 107 new aircraft orders in August after a record 324 in July. The drop-off in demand led to a 74.3% decline in nondefense aircraft and parts orders in August after increasing 315.6% in June. Total transportation orders fell 42.0% after increasing 73.3% in July.
- With the exception of a 0.7% decline in primary metal orders, demand outside of transportation was strong. Big gains were reported in communications equipment (3.5%) and machinery (0.7%).
- Business investment demand improved. Orders of nondefense capital goods excluding aircraft increased 0.6% in August after falling 0.2% in July.
- There was disappointment on the production side. Shipments of business capital increased a very modest 0.1% in August after increasing 1.9% in July and 1.0% in June. The lack of production meant another month of unfilled orders increasing by at least 1.0%. The bottleneck in business investment growth will remain as long as manufacturers continue to stockpile unfilled orders instead of producing them.
- All the improvements in orders of nondefense capital goods excluding aircraft will mean nothing unless manufacturers actually produce and ship those goods to customers.
|Total Durable Orders
|Nondefense/nonaircraft (core cap gds)
|Defense Cap Goods