New Durable Goods Orders Drop 7.3% for July

New orders for durable goods dropped 7.3% to $226.6 billion for July, according to a Commerce Department report (link opens as PDF) released today. It's the steepest drop in nearly a year.

After aircraft orders helped pushed June's new orders up a revised 3.9%, July's decrease proved much larger than expected. Overall, analysts had predicted a milder 4% slump. Durable goods are items meant to last at least three years.

Source: Census.gov. 

Excluding volatile transportation orders (which include aircraft), July's numbers look better, but not great. Analyst expectations called for 0.3% growth, but this newest report indicates 0.6% contraction.

With new orders down, shipments also tapered off 0.3% after a 0.1% slump the previous month. While shipments are down three of the last four months, unfilled orders increased 0.4% in July for the fifth increase in six months. Both unfilled orders and inventories (up 0.4%) are at their highest levels recorded since data was first collected in 1992.

Economists tend to focus on orders for so-called core capital goods. Those orders fell 3.3%, but the drop followed four straight months of gains. Core capital goods are considered a good measure of businesses' confidence in the economy. They include items that point to expansion -- such as machinery, computers and heavy trucks -- while excluding volatile orders for aircraft and defense.

-- Material from The Associated Press was used in this report.

link


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2610120, ~/Articles/ArticleHandler.aspx, 4/23/2014 5:47:06 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement