In a continued downturn for transportation equipment orders, the Commerce Department reported on Friday that new orders for U.S. manufactured durable goods fell more than anticipated in September.
The report indicated that durable goods orders dropped by 0.8 percent in September, reflecting the revised decline seen in August.
Forecasts from economists had projected a 0.5 percent decrease in durable goods orders, compared to the previously reported steady reading of the prior month.
The larger-than-expected decline in durable goods orders was primarily driven by a 3.1 percent fall in transportation equipment orders in September, following a 3.4 percent drop in August.
Notably, orders for non-defense aircraft and parts saw a significant decrease of 22.7 percent, while orders for defense aircraft and parts experienced a dramatic 23.7 percent plunge.
When excluding the downturn in transportation equipment, durable goods orders actually increased by 0.4 percent in September after rising by 0.6 percent in August. Ex-transportation orders were anticipated to slightly decline by 0.1 percent.
This growth in ex-transportation orders was partly due to a 2.1 percent increase in orders for fabricated metal products, alongside a 0.5 percent rise in orders for primary metals.
The Commerce Department reported that orders for non-defense capital goods, excluding aircraft—which serve as a critical indicator of business spending—also saw a 0.5 percent increase in September, following a 0.3 percent rise in August.
Conversely, shipments in this same category, which contribute to GDP equipment investment data, declined by 0.3 percent in September after a slight 0.1 percent decrease in August.
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