By Greg Robb, MarketWatch
WASHINGTON (MarketWatch) — A strong gain in civilian aircraft orders boosted orders for durable goods in September to their largest increase since January.
Orders rose 3.3% in September, the Commerce Department reported Wednesday.
Civilian aircraft accounted for most of the increase in September. Aircraft orders rose 105% in September after a 30% decline in the prior month. Boeing Co. (BA 70.93, -0.37, -0.52%) reported strong orders in September compared with August.
Details of the report were not as strong as the headline suggested.
Excluding the 15.7% rise in transportation orders, durable-goods orders were down 0.8% in September, the second decline in the past three months.
Orders for core capital equipment goods fell 0.6% in September after a 4.8% rise in August, a signal that the manufacturing sector is cooling off.
August’s orders were revised up to a 1.0% fall from 1.5% previously reported.
The headline on durable orders and shipments was stronger than expected. Economists surveyed by MarketWatch were anticipating a 2.5% rise. See economic calendar.
Overall, economists say that manufacturing has lost some of its momentum from earlier this year.
Orders for durable-goods are quite volatile from month to month, but the trend in new orders is considered a valuable leading indicator of the economy as a whole. Durable goods are expensive items designed to last three years or longer. Read the full government report.
In September, orders for computers and electrical equipment fell but were offset by rising orders for machinery and electrical equipment. Orders for motor vehicles decreased 0.4%.
Shipments of durable goods fell 0.4% after falling 1.4% in August.
Shipments of core capital-equipment goods, a direct input into gross domestic product calculations, rose 0.4% in September after rising 1.3% in August.
Inventories of durable goods rose 0.5%, the ninth straight increase.
Unfilled orders rose 1.0% in September, the sixth straight gain.
Economists at RDQ Economics said the one piece of good news in the report is that backlogs have been accelerating so shipments may hold up better than orders for a period as firms catch up filling unfilled orders.
Details
Transportation orders rose 15.7% in September after a 8.8% decrease in August. Shipments fell 0.5% in September.
Orders for computers and electronic products (excluding semiconductors) fell 4.0% in September after rising 3.6% in August. Shipments fell 2.3%.
Orders for machinery rose 2.0% in September after rising 5.3% in August. Shipments rose 1.5%.
Orders for electrical equipment rose 0.4% in September after rising 3.3% in August. Shipments fell 1.3%.
Orders for unfinished metals decreased 0.5% in September after a 1.7% fall in August. Shipments rose 1.0%.
Orders for fabricated metals fell 1.6% in September after rising 1.3% in August. Shipments were down 0.2.
Orders for defense capital goods rose 8% after falling 1.6%. Shipments rose 5.7%. Excluding all defense goods, durable goods orders rose 2.9%.
