Durable Goods Orders Reach Bottom

New orders for real durable goods totaled $244,691 million in October. This was 1.9% less than one year ago. While the month-over-month rate of change has contracted since March, the rate of contraction was less than 2% each of the last two months. 

The result was that the annual rate of change contracted 9.3%, which was the second consecutive month of decelerating contraction. Consumer durable goods spending is growing extremely fast, hitting a record high five straight months, and indicating a bottom in the rate of contraction in durable goods new orders has occurred. 

It’s important to note that aerospace orders in August were negative for the fifth time in six months and non-defense aerospace orders were negative for the sixth consecutive month. 

Accelerating Growth: appliances, computers/electronics

Decelerating Growth: ship/boat building

Accelerating Contraction: aerospace, fabricated metal products, off-road/construction machinery, oil/gas-field/mining machinery, power generation, total capital goods

Decelerating Contraction: construction materials, durable goods, HVAC, machinery/equipment, ​​​​motor vehicle/parts, primary metals

Reports

Top Shops

‘Top Shops’ is a benchmarking and recognition program designed to help shops build their business.

World Machine Tool Survey

An independent annual survey that collects statistics from machine tool consuming and producing countries and compares them in real U.S. dollars.

Capital Spending Survey

An annual survey that collects statistics regarding budgeted spending on machine tools, testing equipment, software and more.

Gardner Business Index

A diffusion index measuring month-to-month changes in activity at durable goods and discrete parts manufacturing facilities.