In September, new orders for durable goods in the United States fell by 0.8%, which was less than the expected 1% decline. The decline in commercial aircraft orders by 22.7% offset the increase in orders for commercial equipment. While orders for cars and metal products increased, orders for computers, electronic products, and machinery decreased. Businesses are cautious about expansion due to rising borrowing costs and uncertainty about future demand. A rate cut by the Federal Reserve may boost demand, but the manufacturing sector faces challenges as the ISM Manufacturing Index has contracted for the sixth consecutive month
According to Zhitong Finance, new orders for durable goods in US factories in September fell, with the decline in commercial aircraft orders offsetting the increase in commercial equipment orders. Data released by the US Department of Commerce on Friday showed that durable goods orders in the US fell by 0.8% in September, compared to an expected decline of 1%, with the previous August figure being revised downward. Excluding transportation equipment, the initial value of durable goods orders in the US in September, excluding transportation, was 0.4%, with an expected -0.1%. The initial value of non-defense capital goods orders in the US in September, excluding aircraft, was 0.5%, with an expected 0.1%.
In addition to the decline in commercial aircraft bookings, orders for computers, electronic products, and machinery also declined, while orders for automobiles and metal products increased. Despite many companies still focusing on long-term investments, uncertainty surrounding the November presidential election and future demand has made some companies cautious about expansion plans. Rising borrowing costs have also limited spending for some companies. Meanwhile, further interest rate cuts by the Federal Reserve may help boost demand and revive the struggling manufacturing sector.
The report shows that non-defense capital goods orders in the US in September, excluding aircraft, fell by 0.3%. Economists will use this data to help adjust their estimates of equipment investment in the government's third-quarter GDP report. Shipments of core capital goods have declined in four out of the past five months.
The latest performance may have also been affected by the disruption caused by the Boeing machinists' strike and Hurricane Helen landing at the end of last month. The US Department of Commerce's durable goods report shows that after a nearly 20% decline last month, commercial aircraft bookings fell by 22.7% this month. Commercial aircraft bookings show significant monthly fluctuations.
Although Boeing reported 65 orders in September, up from 22 the previous month, government data is not always directly related to Boeing's monthly data. A strike involving 33,000 Boeing workers caused significant disruption, leading to the closure of factories in the Pacific Northwest for over a month, with the union rejecting a new labor contract on Wednesday.
Recent surveys of purchasing managers show that the manufacturing sector is struggling. The Institute for Supply Management (ISM) Manufacturing Index for September marked the sixth consecutive month of contraction