Economy

Durable Goods Orders Tumbled in October

Thinkstock

The U.S. Department of Commerce reported on Wednesday that October’s reading on durable goods contracted by 1.2% to $236 billion month over month. The consensus estimate from Bloomberg called for a rise of 0.4% following an increase of 2.2% in September.

Orders for durable goods excluding transportation were up by 0.4%, lower than Bloomberg’s consensus estimate for a 0.5% gain. September’s reading was revised up to a gain of 1.1% from an uptick of 0.7% reported on a preliminary basis.

Excluding orders for defense goods, new orders dropped 0.8%.

There is a core capital goods reading that came in with a month-over-month decline of 0.5%, well below the consensus estimate for a gain of 0.5%. Year over year, the core reading rose 8.1%, below the revised September year-to-date gain of 8.7%.

There were some positive readings inside the October report. There was a 0.7% month-over-month gain in computer and electronic product orders. Defense aircraft parts posted a 5.5% gain to $4.23 billion.

Inventories of manufactured durable goods rose 0.1% to $404.1 billion in October, and that is now up in 15 of the past 16 months. There had been a 0.6% gain in September. Primary metals led the inventory increase with a 0.4% gain to $33.9 billion.

Nondefense new orders for capital goods decreased by $3.4 billion (down 4.5%) to $72.3 billion in October. Shipments decreased by $1.4 billion (1.9%) to $72.37 billion and unfilled orders were unchanged at  $705.23 billion.

Each monthly durable goods report is subject to revision, and there are times that those revisions can be significant. Each of these Commerce Department reports are based on a panel of approximately 5,000 reporting units that represent approximately 3,100 companies from the manufacturing sector.

The Average American Is Losing Their Savings Every Day (Sponsor)

If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.

Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.

But there is good news. To win qualified customers, some accounts are paying 9-10x this national average. That’s an incredible way to keep your money safe, and get paid at the same time. Our top pick for high yield savings accounts includes other one time cash bonuses, and is FDIC insured.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes and your money could be working for you.

 

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.