Durable Goods Orders orders declined less than expected in September, shrinking 0.4% against estimates for a fall of 0.8% and following a rise of 1.3% in August.
Excluding transportation, Durable Goods increased 0.4%, less than estimates for 0.5%, and slightly higher than August’s rise of 0.3%.
Capital Goods
Nondefense capital goods - excluding aircraft, a proxy for business spending, underscored a pickup in corporate spending with a rise of 0.8% in September on the heels of a 0.5% increase in August.
Shipping
Shipments of manufactured durable goods increased 0.4% in September following August’s 0.5% rise. Shipments of machinery were the primary driver of the increase as shipments of machinery grew 1.7%.
Shipping picked up across most categories, however, those most affected by the semiconductor shortage seem to have struggled in September. Computers and related products saw a 0.2% decline, motor vehicles and parts declined 2.3%, transportation equipment lost 1.0%, defense capital goods fell 0.9%, and defense aircraft and parts declined 3.6%.
Inventories
Inventories increased for the eighth consecutive month, increasing 0.9%. This represented a plateauing of inventory growth after inventories increased by 0.9%. Transportation equipment, which has also increased in each of the past eight months, led the increase with a 0.7% rise.
