Workers assemble built-in appliances at the Whirlpool manufacturing plant in Cleveland, Tennessee August 21, 2013. (Photo: Reuters)
The U.S. Census Bureau said new orders for manufactured durable goods increased $3.9 billion or 1.7% to $232.8 billion in August, higher than the 1.5% median forecast. This is the second straight month in which big gains in capital goods fueled what are unmistakably strong reports.
This increase followed a 6.8% July decrease. Civilian aircraft orders bounced back strong surging by 45% in August, which followed a 71% decline and another surge of 129% in the prior two months.
Excluding transportation, so-called core durable orders increased 0.2%. Excluding defense, new durable orders were up 2.2%. Transportation equipment, which has also been up two of the last three months, largely led and fueled the increase, gaining $3.6 billion or 4.9% to $77.4 billion.
Shipments
Shipments of manufactured durable goods in August, which have been up three of the last four months, gained $0.7 billion or 0.3% to $237.2 billion following a 0.1% increase in July. Machinery, which has been up nine of the last ten months, led the gain, rising $0.3 billion or 1.1% to $31.4 billion.
Unfilled Orders
Unfilled orders for manufactured durable goods in August, up two of the last three months, increased $0.1 billion or virtually unchanged to $1,132.3 billion. This followed a 0.3% July decrease. Fabricated metal products, up seven of the last eight months, drove the increase, $0.5 billion or 0.6% to $79.3 billion.
Manufactured durable goods are products such as household appliances, machinery, or sports equipment, which are not consumed or destroyed in use and last three or more years.
Inventories
Inventories of manufactured durable goods in August, up thirteen of the last fourteen months, increased $1.4 billion or 0.3% to $400.5 billion following an increase of 0.4% in July. Machinery, up nine of the last ten months, led the increase, $0.6 billion or 0.8 percent to $69.0 billion.
Capital Goods
Non-defense new orders for capital goods in August increased $3.2 billion or 4.7% to $71.0 billion. Shipments decreased $1.1 billion or 1.5% to $71.6 billion. Unfilled orders decreased $0.6 billion or 0.1% to $704.0 billion. Inventories increased $0.7 billion or 0.4% to $178.3 billion. Defense new orders for capital goods in August decreased $1.1 billion or 9.4% to $10.7 billion. Shipments increased $0.1 billion or 0.8% to $10.4 billion. Unfilled orders increased $0.3 billion or 0.2% to $142.6 billion. Inventories increased $0.3 billion or 1.1% to $23.5 billion.
July Revisions
Revised seasonally adjusted July figures for all manufacturing industries were: new orders, $465.9 billion (revised from $466.4 billion); shipments, $473.5 billion (revised from $474.3 billion); unfilled orders, $1,132.3 billion (revised from $1,131.9 billion) and total inventories, $652.0 billion (revised from $651.6 billion).
