New Durable Goods Orders Stall in July

Durable goods orders stalled out in July, in another sign that the economy is cooling, if not already in recession. Economists polled by the Wall Street Journal had expected 1 percent growth.

New orders for manufactured durable goods in July decreased less than $0.1 billion or virtually unchanged to $273.5 billion, according to a report released by the US Census Bureau today. This decrease, down following four consecutive monthly increases, followed a 2.2 percent June increase. 

  • Excluding transportation, new orders increased 0.3 percent.
  • Excluding defense, new orders increased 1.2 percent.

Transportation equipment, down following three consecutive monthly increases, drove the decrease, $0.6 billion or 0.7 percent to $93.0 billion.



New Durable Goods Orders Point to a V-Shaped Recovery

New orders for manufactured durable goods in October increased $3.0 billion or 1.3 percent to $240.8 billion, according to the U.S. Census Bureau. Transportation equipment, up five of the last six months, led the increase, $0.9 billion or 1.2 percent to $77.1 billion.

  • Excluding transportation, new orders increased by 1.3 percent to $163.7 billion.
  • New orders for capital goods increased by $2.2 billion or 2.7 percent to $83.2 billion.

This is the sixth consecutive monthly increase, placing new orders at only 0.3 percent below the same month a year ago. These results surpassed the consensus expectations of a 0.5 percent increase and shows that the economic recovery continues to have unexpected strength.