Durable Goods Orders Plunge 5.4% Amidst Manufacturing Weakness

Durable goods new orders in the US fell by 5.4 percent in October, but the headline number is not as bad as it seems due to wild swings in aircraft orders. Excluding transportation, new orders were virtually unchanged, while shipments of durable goods decreased by 0.9 percent. Motor vehicles and parts, as well as core capital goods, were down for two consecutive months. Inflation, particularly in rent and food prices, continues to impact the economy.