Here come durable goods

In a preview to clients, Wells Fargo’s Sam Bullard wrote, “Following a 2.3% decline in August, durable goods orders are likely to have retreated in September, largely on the anticipated weakness from aircraft orders”.

Orders for long-lasting manufactured goods fell in September with a key category that tracks business investment plans declining for a second straight month.

“Core” orders, excluding military and transportation orders, are forecast to have risen 0.2%.

Orders for non-defense aircraft and parts showed a steep 35.7 percent drop in September after falling by 11.2 percent in August. The auto industry was one of the few bright spots again, with orders snapping back 1.8% after a decline in August. Ex-transportation orders had been expected to edge down by 0.1 percent.

This is another sign of persistent sluggishness in the United States manufacturing sector.

Economists had expected durable goods orders to fall by about 1.0% compared to the 2.3% drop that had been reported for the previous month. The report includes data on orders for both durable and non-durable goods.

“The September data, along with revisions to prior months, modestly trimmed our estimate of equipment investment in Q3”. Orders minus defense fell a larger 2%. The EconoTimes content received through this service is the intellectual property of EconoTimes or its third party suppliers. Neither EconoTimes nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.