Durable Goods’ Decline

US durable goods have significantly weakened in the prior month, marking the first drop in 4 months. Non-military capital goods orders excluding aircraft dropped 0.5%. Shipments of those products increased 0.4%. Bookings for all durable goods were down 1.2%. Orders, excluding transportation-equipment demand grew 0.4%. Shipments of core capital goods in three-month annualized terms rose 13.1% as investment has improved and consumer spending was sustained. Orders for commercial aircraft and parts declined 18.6%. Orders for motor vehicles and parts increased 1.7%. Bookings for fabricated metal products fell 0.9%. Orders for communications equipment, machinery, computers and electrical hardware picked up. Durable goods inventories were up 0.1%. Defense capital goods orders reduced 9.6%.