U.S. durable goods orders were unexpectedly flat in August, surpassing expectations of a sharp 3% decline, while core capital goods orders saw slight growth.
Orders for U.S. durable goods remained flat in August, according to the Commerce Department's report on Thursday, exceeding economists’ expectations of a 3% decline.
Durable goods include products made to last at least three years, such as machinery, vehicles, and electronics. The flat result follows a revised 9.9% increase in July, slightly up from the earlier estimate of 9.8%.
Meanwhile, core capital goods orders, which excludes volatile sectors of transportation and defense, grew by 0.2% in August, recovering from a 0.2% drop in July. These orders serve as a key indicator of business investment and point toward steady demand despite broader economic concerns.
Shipments of core goods, which are factored into GDP, also saw a slight increase of 0.1%.
The stronger-than-expected headline figure was driven largely by a smaller-than-anticipated decline in aircraft orders. Orders for aircraft dropped just 7.4% in August, significantly less than the forecasted 20%-30% decline, particularly in light of recent reports from Boeing.
Despite this drop, overall transportation orders fell by only 0.8%, following an extraordinary 34.6% surge in July. Motor vehicle and parts orders saw a modest recovery, rising 0.2% after falling 3.5% in the previous month.
Orders excluding transportation grew by 0.5%, reflecting resilience in other sectors. However, excluding defense, orders dipped slightly by 0.2%.
Orders for primary metals, fabricated metals, machinery, and computer equipment all increased in August, offering a positive outlook for the manufacturing sector, which has faced uncertainty due to fluctuating demand.
