New orders for manufactured durable goods in August decreased $11.3 billion or 4.9 percent to $219.5 billion, the U.S. Census Bureau announced today. This decrease followed two consecutive monthly increases, including a 6.1 percent July increase. Excluding transportation, new orders decreased 1.8 percent. Excluding defense, new orders decreased 5.9 percent.
Here is a chart that shows both the monthly increases and decreases and the year-over-year change.
There are some interesting numbers in the report.
The last report had a 6.1% increase -- 3.4% without transportation. So this decrease isn't as big as it looks on the surface. It's more of a natural slowing down from a big month.
Total new orders are up 1.7% from last year. But total new orders without transportation is down (-.1%). That means that without transportation capital goods new orders would be down for the year. That is cause for concern, especially for economists who argue that exports and the cheap dollar will keep us out of a recession. Transportation accounts for 30% of durable goods new orders. This means that 70% of the durable goods producers are at last years level.
Motor vehicle new orders are down 4.5% from last year.
