Orders for U.S. durable goods were little changed in August

WASHINGTON – Orders for U.S. durable goods were little changed in August, while shipments of capital equipment declined for a fourth straight month, indicating lingering weakness in manufacturing.

The latest reading for bookings of goods meant to last at least three years followed a 3.6 percent advance the prior month that was less than initially reported, Commerce Department data showed Wednesday in Washington. Sales of non-defense capital goods excluding aircraft, used in calculating gross domestic product, unexpectedly dropped 0.4 percent last month.

The series of declines in shipments of those goods indicates equipment investment may weigh on economic growth for a fourth straight quarter. While household demand is providing some relief for manufacturing, factory customers are still contending with high inventories relative to sales and overseas markets remain tepid.

“The overall trend in business investment is relatively soft,” Scott Brown, St. Petersburg, Fla.-based chief economist for Raymond James Financial Inc., said before the report. “There are concerns about the global economy and uncertainty about the elections in the U.S. All else being equal, that tends to keep firms on their back heels.”

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Bookings for non-military capital goods excluding aircraft increased 0.6 percent in August. While that was stronger than forecast and the third straight advance, orders rose 0.8 percent in July, less than an initially reported 1.5 percent gain.

The drop in shipments of non-defense goods excluding aircraft, which were projected to rise 0.1 percent, followed a 0.7 percent July decline that was worse than previously reported. They were down an annualized 5.1 percent over the latest three-month period.

The median forecast in the Bloomberg survey called for a 1.5 percent decrease in total durable goods, with estimates ranging from a 3 percent decline to a 2 percent advance.

The report also showed bookings for commercial aircraft fell 21.9 percent following a 73.7 percent surge in July. Boeing Co., the Chicago-based aerospace company, said it received 22 orders for aircraft in August, fewer than the 73 in the prior month.

Excluding transportation equipment, which is often volatile, orders fell 0.4 percent.

Orders for military capital equipment increased 23.6 percent, while demand for non-defense durable goods fell 1 percent.

Durable goods inventories rose 0.1 percent after a 0.4 percent gain.

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