Aerospace Orders Increase Amid Durable Goods Contraction

Month-over-month, durable goods orders contracted for the third-straight month in October, marking eight of the last nine months.

New orders for real durable goods totaled $252,945 million in October, which was down 2.9% from one year ago. This was the third consecutive month that new orders contracted. Additionally, durable goods new orders contracted for the eighth time in nine months. The result was that the annual rate of change contracted 2.6%, moving at a faster rate of contraction for the third-straight month.

Compared with one year ago, new orders for motor vehicles and parts contracted 6.5%. This was the third consecutive month of month-over-month contraction and the fastest rate of contraction since July 2016. The annual rate of growth, now 2.4%, decelerated for the fourth month. This was the slowest rate of annual growth since June 2018.

Aerospace orders increased 0.7% in October, increasing for just the second time in nine months. The annual rate of contraction was 27.7%, decelerating for the first time in seven months. Annually, non-defense orders continued to contract at an accelerating rate while defense orders contracted for the second month in a row.

Accelerating Growth: 

Decelerating Growth: computers/electronics, HVAC, motor vehicle/parts, power generation

Accelerating Contraction: appliances, construction materials, durable goods, fabricated metal products, machinery/equipment, off-road/construction machinery, oil/gas-field/mining machinery, primary metals, total capital goods

Decelerating Contraction: aerospace, ship/boat building

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