U.S. Durable Goods Orders Fell 0.5% in October

Orders for long-lasting goods such as appliances, cars and computers decreased for the second straight month in October as U.S. manufacturers continued to confront higher material and shipping costs as well as labor and parts shortages.

New orders for products meant to last at least three years decreased 0.5% to a seasonally adjusted $260.1 billion in October when compared with September, the Commerce Department said Wednesday.

Economists surveyed by The Wall Street Journal had forecast a 0.3% increase.

Orders decreased a revised 0.4% in September from the prior month, down from an earlier estimate that had shown a 0.3% decline. Demand for durable goods has increased in 15 of the past 18 months, following an April 2020 low point early in the pandemic.

Deplenished business and retail inventories, plus strong consumer spending, have translated to increased demand for manufacturers. But supply-chain bottlenecks continue to constrain production and delay some shipments.

New orders for nondefense capital goods excluding aircraft–so-called core capital-goods, a closely watched proxy for business investment–were up 0.6% in October compared with the previous month.

Year to date, new orders for durable goods are up 22.1% compared with the same period a year earlier. Shipments, meanwhile, are up 13%.
Source: Dow Jones