Durable Goods Orders Contract for First Time Since June 2018

The annual rate of growth decelerated for the fourth month in a row, moving from 5.5 to 4.5 percent.

New orders for real durable goods in February totaled $235,236 million. Compared with one year ago, new orders contracted 2.1 percent, which was the first month of contraction since June 2018 and the second since April 2017. The annual rate of growth decelerated for the fourth month in a row, moving from 5.5 to 4.5 percent. This was the slowest rate of annual growth since December 2017.

New orders for motor vehicles and parts remained relatively robust, growing 4.8 percent in February compared with one year ago. The annual rate of growth was unchanged at 6.0 percent. 

Aerospace orders contracted 29.9 percent, contracting for the fourth time in five months. February doesn’t even reflect the state of orders after Boeing’s 737 issues. Several global air carriers have canceled orders, so further contraction in aerospace orders likely is ahead.

Accelerating Growth: aerospace, HVAC, motor vehicle/parts

Decelerating Growth: computers/electronics, construction materials, durable goods, fabricated metal products, machinery/equipment, off-road/construction machinery, power generation, primary metals, total capital goods

Accelerating Contraction: oil/gas-field/mining machinery, ship/boat building

Decelerating Contraction: appliances,

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