WASHINGTON — The value of U.S. durable goods new orders fell 1.2% in October, well below expectations for a 0.5% increase, as transportation orders plunged 4.3% to more than offset an as-expected 0.4% rise in new orders excluding transportation orders.
The rise in new orders excluding transportation reflected gains in every component except for a 0.9% decline in fabricated metals products.
Nondefense aircraft and parts new orders posted an 18.6% decline in October after solid gains in the previous two months, while defense aircraft and parts continued its recent string by falling 11.3%. In addition, transportation orders excluding motor vehicles and aircraft fell 16.8%, according to an MNI calculation. Motor vehicles orders rose 1.7% to provide some offset.
Nondefense capital goods new orders fell 4.5%, but was down only 0.5% excluding a 33.3% decline in civilian aircraft.
Durable goods shipments rose 0.1% in October, with nondefense capital goods shipments down 1.9% and up 0.4% excluding civilian aircraft shipments, a slow start for the fourth quarter.
Durable goods inventories were up only 0.1% in the month, while unfilled orders were roughly unchanged.
