August US durable goods orders drop by largest amount since 2009

28 September 2012 04:56  [Source: ICIS news]

HOUSTON (ICIS)--US orders for new durable goods in August fell by the largest amount since January, 2009, the US Commerce Department said on Thursday.

Orders for durable goods fell by $30.1bn (€23bn), or 13.2%, to $198.5bn, from July, the department said in its monthly report.

The sharp drop follows three consecutive months of gains, including a 3.3% revised July increase.

Excluding aircraft and other transportation equipment, new orders decreased 1.6 percent.

Aircraft orders often are made in multiple-plane purchases and in any given month those commitments – or their lack – can affect manufacturing data disproportionately. 

Consequently, economists typically look to durable goods sales minus transportation equipment to get a better sense of the so-called core of US manufacturing. 

Durable goods are manufactured products meant to last three years or more and include such items as automobiles, appliances, transportation and manufacturing equipment. 

Many durable goods, such as computers and automobiles, are major downstream markets for chemicals and derivatives used in manufacturing processes or as end-product components.

Unfilled orders for manufactured durable goods in August fell following two consecutive monthly increases, dropping by $16.9bn, or 1.7%, to $978.7bn. This was the largest decrease since December 2009 and followed a 0.7% July increase.

Inventories increased by $2.2bn, or 0.6%, to $371.6bn, the highest level in at least 20 years, the department said.

US durable goods orders and inventories

 

 August (bn $)

August vs July   (%)

July vs June (r) (%)

New orders

198.5

-13.2

3.3

Unfilled orders

978.7

-1.7

0.7

Total inventories

371.6 

 0.6

0.8

r: revised *seasonally adjusted

 ($1 = €0.77)


By: Brian Ford
+1 713 525 2653



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