WASHINGTON — October durable orders posted a 0.4% gain in a rebound after two months of drops, passing the expectation for a dip. But the details of the report were not favorable.
Ex transportation orders posted a 0.9% decline, and ex-defense fell 0.6%. This is opposite of forecasts, which called for lower Boeing orders to depress the overall reading.
Boeing Corp. said its actual orders for commercial aircraft were cut by over 60% during the month. But nondefense aircraft was just off 0.1% after seasonal adjustment. The raw data showed a $7 billion drop.
Metals, machinery, and electronics orders all fell, suggesting weakness. Computers posted just a 0.1% rise.
Nondefense capital goods orders ex aircraft posted a 1.3% drop.
October shipments were up 0.1%, but inventories posted a 0.5% gain. This is the classic signal of a slowing in manufacturing. The Q3 drawdown in overall inventories was just $5.7 billion.
Nondefense capital goods shipments were off 0.8%, suggesting a slow start to capital spending in Q4.
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