Durable goods excluding transportation posted another weak result in August, falling 3.0% despite forecasts for a 0.5% decline, according to the Department of Commerce. Total new orders were even more disappointing, falling by 4.5% against expectations of a 1.9% loss.
July's gain in the ex-transport figure was revised down to a 0.1% gain from an initially reported 0.7% gain, while July's total new orders were revised down to a 0.8% gain from an originally 1.3% advance.
Excluding defence, orders were down 5.0% following an increase of 1.9% in the previous month.
Non-defence capital goods excluding aircraft fell 2.0% in August following a 0.4% rise in the previous month.
The shipments component showed a 3.5% decline compared to the previous month's 2.3% increase.
Excluding transportation, shipments fell 2.1% after July's 2.2% increase, while shipments excluding defence posted a 3.6% decrease following a 2.2% rise in July.
The durable goods report is a key indicator of the national manufacturing sector. The index looks at 'hard' goods only, or products that have a life expectancy of at least three years, such as autos, computers and machinery, aircraft, and communication equipment.
A more comprehensive report which includes 'soft' goods as well as revisions to the preliminary data in the durable goods will be released in the Factory Orders report, to be published on Oct. 2.
By Patrick McGee and edited by Stephen Huebl
©CEP News Ltd. 2008