New orders for manufactured durable goods fell 5.4 percent in October, according to the latest Census Bureau report released November 22nd. The decrease was mainly driven by a sharp drop in orders for transportation equipment, which plunged 14.8 percent as the UAW strike impacted orders for motor vehicles.
The report showed that new orders for durable goods totaled $279.4 billion in October, down $16.0 billion from the previous month. This followed a 4.0 percent increase in September, which was revised down from the initial estimate of 4.4 percent.
Excluding transportation, which accounts for about a third of the total, new orders were virtually unchanged in October, after rising 1.0 percent in September. Excluding defense, another volatile category, new orders decreased 6.7 percent, after increasing 4.9 percent.
The decline in transportation orders was broad-based, affecting both civilian and military sectors. Orders for nondefense aircraft and parts plummeted 38.0 percent, while orders for defense aircraft and parts tumbled 25.6 percent. Orders for motor vehicles and parts also fell 4.2 percent, reflecting the ongoing impact of the global semiconductor shortage and supply chain disruptions.
Other categories of durable goods also showed mixed results in October. Orders for machinery increased 1.5 percent, while orders for computers and electronic products rose 0.8 percent. Orders for fabricated metal products edged up 0.2 percent, while orders for electrical equipment, appliances and components gained 0.1 percent. On the other hand, orders for primary metals decreased 1.4 percent, while orders for miscellaneous durable goods fell 0.9 percent.
The report also provided data on shipments, inventories and unfilled orders of durable goods. Shipments of durable goods, which measure the value of goods delivered to customers, increased 0.5 percent in October, after falling 0.2 percent in September. Inventories of durable goods, which reflect the value of goods held in stock by manufacturers, rose 0.6 percent in October, after increasing 0.5 percent in September. Unfilled orders of durable goods, which measure the backlog of orders that have not yet been completed, decreased 0.6 percent in October, after rising 0.8 percent in September.
