Durable Goods Orders Fall for First Time Since February
New orders for manufactured durable goods fell for the first time in February, coming in at $285.93B in July. This is a 5.2% decrease from the previous month and is worse than the expected 4.0% decline. The series is up 3.8% year-over-year (YoY). If we exclude transportation, "core" durable goods were up 0.5% from the previous month and up 1.1% from one year ago.
New orders for manufactured durable goods in July, down following four consecutive monthly increases, decreased $15.5 billion or 5.2 percent to $285.9 billion, the U.S. Census Bureau announced today. This followed a 4.4 percent June increase. Excluding transportation, new orders increased 0.5 percent. Excluding defense, new orders decreased 5.4 percent. Transportation equipment, also down following four consecutive monthly increases, drove the decrease, $16.4 billion or 14.3 percent to $98.7 billion.
Durable goods refers to tangible products that can be stored or inventoried and that have an average life of at least three years. Durable goods are typically expensive and therefore tend to be purchased when there is confidence in the economy. New orders for durable goods are a leading indicator, meaning when purchases increase it typically hints at an improvement to the economy. On the flip side, when the new orders trend down it is indicating a lack of confidence in the economy.