August Durable Goods New Orders Fall Back into Contraction

On an annual basis, the rate of change in durable goods new orders contracted for the first time since May 2017.

New orders for real durable goods totaled $254,051 million in August, which was down 6.4% from one year ago. Durable goods new orders contracted for the sixth time in seven months, and the rate of month-over-month contraction has accelerated in recent months. The result was that the annual rate of change contracted 1.2%, contracting for the first time since May 2017. 

Compared with one year ago, new orders for motor vehicles and parts contracted 2.6%. That was the first month of month-over-month contraction since May 2018. The annual rate of growth, now 4.4%, decelerated for the second month. This was the slowest rate of annual growth since September 2018

While aerospace orders grew 11.0% last month, they contracted 42.5% in August compared with one year ago. Aerospace orders contracted in eight out of the last 10 months. And, in six out of the last seven months, aerospace orders contracted more than 20%. The annual rate of contraction contracted for the sixth month in a row, accelerating to 20.1% in August. Annually, non-defense orders continued to contract while defense orders continued to grow. 

Accelerating Growth: 

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

Accelerating Contraction: aerospace,construction materials, durable goods, machinery/equipment, off-road/construction machinery, oil/gas-field/mining machinery, primary metals, ship/boat building, total capital goods

Decelerating Contraction:  appliances

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