Orders for durable manufactured goods rose 3.3 percent in September but fell 0.8 percent excluding the volatile category that includes aircraft. Inventories, meanwhile, rose for the ninth straight month, according to a report from the U.S. Census Bureau.
The report suggested a slowing of investment in business equipment after the surge earlier this year – and a possible weakening in freight transportation demand as inventories outpace orders.
“The bottom line is that we are transiting a relatively soft spot in the recovery in terms of final domestic spending, and the slowdown in business equipment spending is one of the contributing factors,” said Brian Bethune, chief U.S. financial economist at IHS Global Insight.
Durable goods are products designed to last at least three years, such as cars, furniture, machinery and appliances.
New orders for non-defense capital goods excluding aircraft are a barometer of capital spending by businesses. Last month’s 0.6 percent decline came as shipments of non-defense capital goods excluding aircraft rose 0.4 percent and core capital goods inventories rose 0.3 percent.
-- Contact Joseph Bonney at email@example.com.