U.S. manufactured durable goods fell for the second month in a row in October, dragged down by transportation. New orders for products meant to last at least three years decreased 0.5% to a seasonally adjusted $260.1 billion in October when compared with September, per the Commerce Department. Economists had predicted a rise for the month.
The measure is a survey conducted monthly by the U.S. Census Bureau and measures current industrial activity. The durable goods measure can provide more insight into the supply chain and is used as an economic indicator. A low number points to a downward economy while a high durable goods number indicates an economy on the upswing.
For October, the unexpected dip in durable goods orders was due to a drop in transportation equipment order by 2.6% in October, following a 2.8% decline in September. This was mainly caused by a steep decrease in commercial aircraft and parts by 14.5% and orders for defense aircraft and parts falling 21.8%.
Outside of transportation, the print rose, including notable increases in orders for primary metals and electrical equipment, appliances and components. Orders for non-defense capital goods excluding aircraft, a key indicator of business spending, increased by 0.6% in October after jumping by 1.3% in September.
