News Column

Bottom Dropped Out of Durable Goods Orders in July

August 26, 2013
durable goods
Orders for durable goods fell more sharply than expected in July (file photo)

New orders for durable goods fell sharply in July, the U.S. Commerce Department said Monday.

Durable goods orders dropped 7.3 percent to $226.6 billion, a drop of $17.8 billion that was far more than economists had expected. The consensus forecast called for a decline of about 3 percent.

New orders fell after four consecutive gains. In June, new orders rose 3.9 percent over May, a figure left unrevised from the previous report.

The U.S. Census Bureau said orders for big-ticket transportation items -- ships, trucks, planes and railroad cars -- fell after rising for four months out of the previous five.

New transportation orders in July dropped by 19.4 percent or $16.7 billion to $69.7 billion. The biggest contribution to the decline came from commercial aircraft orders, which dropped by $14.5 billion.

Shipments of durable goods, down in three of the past four months, declined by 0.3 percent to $228.8 billion.

Shipments of electronic goods and computers fell by 3.2 percent to $26.6 billion.

Non-defense orders for capital goods in July fell by 15.4 percent or $14.2 billion to $78 billion. That measures how much investment was plowed into business machinery in the month, including printing press and other factory equipment. It is considered a key measure of business confidence.

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Source: Copyright UPI 2013

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