WASHINGTON — New orders for U.S. manufactured durable goods were virtually unchanged in August, edging down by just $0.1 billion to $338.6 billion, according to the U.S. Census Bureau’s advance report released today. The flat reading followed two consecutive monthly increases, including a revised 0.9% gain in July, and came in better than expectations for a decline.
Excluding transportation, new orders rose 0.3%. Excluding defense, orders increased 0.1%. The headline number was held back mainly by transportation equipment, which fell for the third time in four months.
Key August Data
| Category | August Result |
|---|---|
| Total durable goods orders | $338.6 billion |
| Month-over-month change | Virtually unchanged |
| July change | +0.9% |
| Forecast | -0.3% |
| Orders excluding transportation | +0.3% |
| Orders excluding defense | +0.1% |
| Transportation equipment | -0.6% to $114.1 billion |
Transportation equipment was the main drag on the headline figure, falling $0.7 billion, or 0.6%, to $114.1 billion. Within that category, nondefense aircraft and parts declined 4.3%, contributing to the overall transportation decrease.
Outside transportation, the report showed more underlying strength. Core orders rose 0.3%, while nondefense capital goods excluding aircraft, a closely watched proxy for business investment, increased 1.6%.
Several categories tied to electrical manufacturing, automation, data centers and industrial infrastructure posted gains in August. Electrical equipment, appliances and components rose 1.1%, while computers and related products increased 1.5%. Machinery also gained 1.1%, pointing to continued demand for equipment used in industrial, automation and infrastructure applications.
For electrical distributors and manufacturers, the report suggests that demand tied to electrification, power infrastructure, data centers and industrial investment remains resilient, even as broader durable goods growth paused.
Federal Reserve Implications
The report is unlikely to change the Fed’s outlook on its own, but it shows the economy is not weakening quickly. Durable goods orders were flat instead of down, and core business investment remained firm, giving the Fed more reason to take a cautious, wait-and-see approach to future rate cuts rather than move aggressively.
Tagged with durable goods, economy