Durable Goods Orders Reach Bottom
Consumer durable goods spending is growing extremely fast, hitting a record high five straight months, and indicating a bottom in the rate of contraction in durable goods new orders has occurred.
New orders for real durable goods totaled $244,691 million in October. This was 1.9% less than one year ago. While the month-over-month rate of change has contracted since March, the rate of contraction was less than 2% each of the last two months.
The result was that the annual rate of change contracted 9.3%, which was the second consecutive month of decelerating contraction. Consumer durable goods spending is growing extremely fast, hitting a record high five straight months, and indicating a bottom in the rate of contraction in durable goods new orders has occurred.
It’s important to note that aerospace orders in August were negative for the fifth time in six months and non-defense aerospace orders were negative for the sixth consecutive month.
Accelerating Growth: appliances, computers/electronics
Decelerating Growth: ship/boat building
Accelerating Contraction: aerospace, fabricated metal products, off-road/construction machinery, oil/gas-field/mining machinery, power generation, total capital goods
Decelerating Contraction: construction materials, durable goods, HVAC, machinery/equipment, motor vehicle/parts, primary metals