Durable Goods Decreased 0.6% in October

Nov. 25, 2009
Machinery, had the largest decrease, $1.9 billion or 8% to $21.8 billion.

Manufactured durable goods in October decreased $1.0 billion or 0.6%to $166.2 billion, the U.S. Census Bureau announced on Nov. 25.

This was the second monthly decrease in the last three months. This followed a 2% September increase.

Excluding transportation, new orders decreased 1.3%. Excluding defense, new orders increased 0.4%.

Machinery, down following two consecutive monthly increases, had the largest decrease, $1.9 billion or 8% to $21.8 billion.

"A mixture of a large gains in civilian aerospace orders and large declines in defense orders were indicative of the up and down nature of today's report on durable goods," said Daniel J. Meckstroth, Chief Economist for the Manufacturers Alliance/MAPI.

"Material industries like steel and fabricated metal products benefited from an inventory induced rebound while much of the capital equipment industries posted a sharp decline in October orders. A good indicator of the business equipment sector, nondefense capital goods orders excluding aircraft, fell 2.9% in October following a 2.6% increase the previous month.

"The report confirms the tenor of the October industrial production report released last week by the Federal Reserve, that the industrial expansion has flattened out after an aggressive rebound from July to September that was narrowly led by government stimulus and inventory swings," he added. "While we are convinced that the industrial recession has ended, the chance of a vigorous recovery is remote. Capital goods industries are impaired by excess capacity and accelerating declines in nonresidential construction. The industrial recovery will likely be relatively slow and punctuated by fits of growth and decline."

Popular Sponsored Recommendations

Discrete and Process Manufacturing 2024 Trends and Outlook for North America

Oct. 29, 2023
Manufacturers are reaping the benefits of automation and cloud-based solutions. Discover what is driving today's industry trends and how they can shape your growth priorities ...

Beware Extreme Software

Sept. 24, 2023
As a manufacturer, you understand the importance of staying ahead of the curve and being proactive in your approach to technology. With the rapid pace of change in the industry...

Why DataOps may be the key to unlocking the full potential of digital transformation

Nov. 3, 2023
Read the 2023 market survey conducted by IndustryWeek

The Ultimate Ecommerce Excellence Checklist

Oct. 2, 2023
Scaling ecommerce operations is no easy task when your business is moving fast. Assess your current ecommerce maturity level and set optimization priorities with this practical...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!