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US Manufactured Goods Orders Slump in July

Aug. 24, 2023
New orders for durable goods fell 5.2% from June to July to $285.9 billion, according to Commerce Department data.

Orders of major U.S. manufactured goods slipped in July according to government data released Thursday, as a boost in civilian aircraft orders faded.

New orders for durable goods fell 5.2% from June to July to $285.9 billion, according to Commerce Department data, a slightly bigger drop than analysts had expected.

The slide comes on the back of a 43.6% plunge in nondefense aircraft and parts, while new orders ticked up 0.5% overall when the transportation segment was excluded.

Despite the dramatic figure, "this merely reverses the June spike, caused by a surge in civilian aircraft orders at the Paris Air Show, which was not repeated in July," said analysts at Pantheon Macroeconomics in a recent report.

"The big picture here is that the re-opening boost to civilian aircraft demand has faded," they added.

Elsewhere, orders of motor vehicles and parts rose 0.8% last month, according to the Commerce Department.

Fresh orders of nondefense capital goods excluding aircraft edged up 0.1% -- a key figure to watch as such orders factor in to the equipment investment component of GDP, said Pantheon economists.

The near-flat reading comes as the Federal Reserve's interest rate hikes continue feeding through the economy, as policymakers work to ease demand and cool inflation sustainably.

Copyright 2023, Agence France-Presse

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