Durable Goods Orders Gain 3.0% in Oct.; Ex-Transportation Up 0.5%

WASHINGTON – October durables orders posted a 3.0% gain after two months of drops, and ex-transportation orders posted a 0.5% increase and ex-defense grew 3.2%.

These are decent gains for the core measures.

Weakness was centered in motor vehicles orders at a 2.9% decline, and electronics at a 1.1% drop. All other areas had gains, with primary metals the least strong at a 0.4% increase.

Nondefense aircraft orders surged 81.0%, with seasonal adjustment adding a massive $3 billion to the total, probably an artifact of the prior ordering pattern at the Boeing Corp.

A better gauge of the underlying status of orders is nondefense capital goods orders ex aircraft, which came in at a 1.3% rise. That represents a surge after a modest gain in September and a drop in August.

This would be impressive except NDCG shipments ex aircraft were down 0.4%. A drop is a slow start to Q4 capital spending.

Shipments posted a 1% decline overall, and inventories slipped 0.2%. These confirm that the manufacturing sector still struggles.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.
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