Durable Goods Orders in U.S. Unexpectedly Fell in February
Source: Bloomberg
(Bloomberg) -- Orders for durable goods unexpectedly dropped in February, a sign the slowdown in global growth may be weighing on American manufacturers.
Bookings for goods meant to last at least three years declined 1.4 percent after a 2 percent gain in January that was smaller than previously estimated, data from the Commerce Department showed Wednesday in Washington. The median forecast of 81 economists surveyed by Bloomberg estimated durable goods orders would rise 0.2 percent.
Demand for American-made products may be softening as economies abroad struggle to accelerate and a stronger dollar makes it more attractive for foreign customers to buy from elsewhere. Increased business spending will be needed to provide a boost to the economy following what some economists are projecting as lackluster growth in the first quarter.
“Businesses have been extremely cautious,” said Stephen Stanley, chief economist at Amherst Pierpont Securities LLC in Stamford, Connecticut, whose forecast for a 1.5 percent decrease in durable goods orders was among the closest. “The economy hasn’t been especially strong. In particular, people have had their doubts about the sustainability of growth.”
Read more: http://www.bloomberg.com/news/articles/2015-03-25/durable-goods-orders-in-u-s-unexpectedly-dropped-in-february
I like to send people to the source, though the unemotional demeanor of the press release may hide implications. Bloomberg saw an undesirable side to the news, so I edited the post to emphasize the downside to this report.
Economic Indicators
New orders for manufactured durable goods in February decreased $3.2 billion or 1.4 percent to $231.3 billion.
Adriana Stoica
Economic Indicators Division
(301) 763-4832
M3-1 (15)-02
CB15-53
Advance Report on Durable Goods Manufacturers’ Shipments, Inventories and Orders
February 2015
New Orders
New orders for manufactured durable goods in February decreased $3.2 billion or 1.4 percent to $231.3 billion, the U.S. Census Bureau announced today. This decrease, down three of the last four months, followed a 2.0 percent January increase. Excluding transportation, new orders decreased 0.4 percent. Excluding defense, new orders decreased 1.0 percent.
Transportation equipment, also down three of the last four months, led the decrease, $2.5 billion or 3.5 percent to $69.5 billion.
Shipments
Shipments of manufactured durable goods in February, down four of the last five months, decreased $0.5 billion or 0.2 percent to $244.0 billion. This followed a 1.4 percent January decrease.
Primary metals, down five consecutive months, led the decrease, $0.3 billion or 1.1 percent to $26.1 billion.
Unfilled Orders
Unfilled orders for manufactured durable goods in February, down three consecutive months, decreased $5.6 billion or 0.5 percent to $1,156.9 billion. This followed a 0.3 percent January decrease.
Transportation equipment, also down three consecutive months, led the decrease, $4.6 billion or 0.6 percent to $731.6 billion.
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