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U.S. Sept. durable-goods orders revised up to 8.7% vs. 8.3%
U.S. Oct. electronics orders down 10.2%
U.S. Oct. transportation orders down 21.7%
U.S. Oct. core capital equipment orders down 5.1%
U.S. Oct. durable-goods orders ex-transportation down 1.7%
U.S. Oct. durable-goods shipments up 0.6%
Biggest decline in durables orders since July 2000
U.S. Oct. durable goods orders fall 8.3% vs. -4.8% expected
ECONOMIC REPORT: Durable orders fall 8.3%, most in six years; Core capital equipment orders fall 5.1%, first decline in six months
By Rex Nutting, MarketWatch
Last Update: 8:51 AM ET Nov 28, 2006
WASHINGTON (MarketWatch) -- Led by falling orders for new airplanes, demand for U.S.-made durable goods fell 8.3% in October, erasing September's 8.7% gain, the Commerce Department said Tuesday.
It was the biggest drop in orders for durable goods since July 2000.
New orders for civilian aircraft plunged 44.5% last month, contributing to the 21.7% decline in orders for transportation goods.
While the drop in orders to Boeing was a big part of the story in October, the report also showed weak demand for electronics, defense goods and fabricated metals. Excluding transportation goods, orders fell 1.7%.
Orders for core capital goods -- the kind of equipment businesses invest in to help them produce more goods -- fell 5.1% in October, the first decline in six months.
The 8.3% decline was much greater than the 4.8% drop expected by Wall Street economists surveyed by MarketWatch.
Durable-goods orders are up 8.3% in the past 12 months, but are roughly flat over the past five months. Orders excluding transportation are down slightly since May.
Shipments of durable goods rose 0.6% in October after falling 2.7% in September. Unfilled orders increased 1.2%, with most of the gain coming in the civilian aircraft sector. Inventories of finished goods rose 0.8%.
The weaker-than-expected report mirrors the softening in the manufacturing sector reported in the Institute for Supply Management index for October and in the industrial production report for October. The November ISM index will be released on Friday, a key test for the economic outlook.
Thus far, Federal Reserve officials seem unperturbed by the slowdown in manufacturing, which has been centered in the auto and housing sectors. Fed Chairman Ben Bernanke is scheduled to speak about the outlook later Tuesday.
The Federal Open Market Committee meets again in two weeks. Analysts expect no change in the Fed's 5.25% overnight lending target rate.
Details
Orders for nondefense nonaircraft capital goods fell 5.1% after rising 3.2%. Orders are up 9.7% in the past year. Shipments of core capital equipment fell 1.5% after dropping 1.6% in September.
Transportation orders fell 21.7% in October after rising 29.9% in September. Shipments rose 0.6%. Orders for civilian aircraft fell 44.5% after rising 198.2% in September. Motor vehicle orders rose 1.4% after falling 6%.
Electronics orders (excluding semiconductors) fell 10.2% in October after rising 2.3% in September. Shipments (which include semiconductors) rose 1.1%. Orders for computers fell 25.6% after a 0.9% gain in September and are now down 1.9% in the past year.
Orders for machinery rose 1.4% in October after a 3.5% gain in September. Shipments increased 1.9%.
Orders for defense capital goods fell 42.1%, the biggest decline in four years. Orders excluding defense dropped 6.4%, also the biggest decline in four years.
Orders for primary metals rose 1.1% in October after falling 3.1% in September. Shipments fell 1.3%.
Orders for fabricated metals fell 2.5% after falling 2.2% in September. Shipments rose 0.2%
U.S. Sept. durable-goods orders revised up to 8.7% vs. 8.3%
U.S. Oct. electronics orders down 10.2%
U.S. Oct. transportation orders down 21.7%
U.S. Oct. core capital equipment orders down 5.1%
U.S. Oct. durable-goods orders ex-transportation down 1.7%
U.S. Oct. durable-goods shipments up 0.6%
Biggest decline in durables orders since July 2000
U.S. Oct. durable goods orders fall 8.3% vs. -4.8% expected
ECONOMIC REPORT: Durable orders fall 8.3%, most in six years; Core capital equipment orders fall 5.1%, first decline in six months
By Rex Nutting, MarketWatch
Last Update: 8:51 AM ET Nov 28, 2006
WASHINGTON (MarketWatch) -- Led by falling orders for new airplanes, demand for U.S.-made durable goods fell 8.3% in October, erasing September's 8.7% gain, the Commerce Department said Tuesday.
It was the biggest drop in orders for durable goods since July 2000.
New orders for civilian aircraft plunged 44.5% last month, contributing to the 21.7% decline in orders for transportation goods.
While the drop in orders to Boeing was a big part of the story in October, the report also showed weak demand for electronics, defense goods and fabricated metals. Excluding transportation goods, orders fell 1.7%.
Orders for core capital goods -- the kind of equipment businesses invest in to help them produce more goods -- fell 5.1% in October, the first decline in six months.
The 8.3% decline was much greater than the 4.8% drop expected by Wall Street economists surveyed by MarketWatch.
Durable-goods orders are up 8.3% in the past 12 months, but are roughly flat over the past five months. Orders excluding transportation are down slightly since May.
Shipments of durable goods rose 0.6% in October after falling 2.7% in September. Unfilled orders increased 1.2%, with most of the gain coming in the civilian aircraft sector. Inventories of finished goods rose 0.8%.
The weaker-than-expected report mirrors the softening in the manufacturing sector reported in the Institute for Supply Management index for October and in the industrial production report for October. The November ISM index will be released on Friday, a key test for the economic outlook.
Thus far, Federal Reserve officials seem unperturbed by the slowdown in manufacturing, which has been centered in the auto and housing sectors. Fed Chairman Ben Bernanke is scheduled to speak about the outlook later Tuesday.
The Federal Open Market Committee meets again in two weeks. Analysts expect no change in the Fed's 5.25% overnight lending target rate.
Details
Orders for nondefense nonaircraft capital goods fell 5.1% after rising 3.2%. Orders are up 9.7% in the past year. Shipments of core capital equipment fell 1.5% after dropping 1.6% in September.
Transportation orders fell 21.7% in October after rising 29.9% in September. Shipments rose 0.6%. Orders for civilian aircraft fell 44.5% after rising 198.2% in September. Motor vehicle orders rose 1.4% after falling 6%.
Electronics orders (excluding semiconductors) fell 10.2% in October after rising 2.3% in September. Shipments (which include semiconductors) rose 1.1%. Orders for computers fell 25.6% after a 0.9% gain in September and are now down 1.9% in the past year.
Orders for machinery rose 1.4% in October after a 3.5% gain in September. Shipments increased 1.9%.
Orders for defense capital goods fell 42.1%, the biggest decline in four years. Orders excluding defense dropped 6.4%, also the biggest decline in four years.
Orders for primary metals rose 1.1% in October after falling 3.1% in September. Shipments fell 1.3%.
Orders for fabricated metals fell 2.5% after falling 2.2% in September. Shipments rose 0.2%
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