WASHINGTON — The September U.S. durables goods report was pretty much as expected, showing some core weakness that caused a little inventory building.
September durables orders were up 3.7% after a 0.2% rise in August, continuing a move higher, as expected. Orders are now up in five of the last six months, an up-trend.
However, the gains were concentrated in a few areas. Boeing Corp. reported 127 new orders, a surge from 16 in August. So it was no surprise that the month's move was led by a 57.5% surge in nondefense aircraft orders.
Orders excluding transportation were down 0.1% in a third drop, and orders ex-defense were 3.2% higher. These show core weakness centered in machinery orders, down 1.8%, and electronics, which fell 0.3% in September. Motor vehicle orders were weak as well at a 0.3% decline.
But orders for primary metals posted a 2.7% increase, their best gain since February, and computers were up 0.6%.
Shipments were up 0.2%, and inventories up 0.9%, their biggest gain since July 2011. Nondefense capital goods shipments advanced 0.4% in a second gain, but their Q3 average suggests only modest capital spending.
Overall, this report represents another modest signal for real growth, with spending and orders moderating and inventories accumulating.
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