Durable goods orders post first drop since April
Orders for big-ticket items dipped 0.4% in September
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Orders for big-ticket items fell last month for the first time since April as manufacturers grappled with supply chain bottlenecks.
New orders for manufactured goods declined 0.4% in September, according to the Census Bureau. Analysts surveyed by Refinitiv were expecting a decrease of 1.1%. Orders rose by a downwardly revised 1.3% in August, and have increased in 15 of the past 17 months..
Excluding transportation, orders increased 0.4%, matching expectations. Transportation equipment, which has dropped two of the past three months, drove the decline, down 2.3%.
"The weakness in headline durable goods orders last month was driven by another fall in transport orders, which mostly reflects supply problems in the auto market," wrote Michael Pearce, senior U.S. economist at research firm Capital Economics. "The strong increase in underlying orders and shipments suggests that demand remains rock solid."
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Shipments increased 0.4%, and have risen four of the past five months. Machinery led the increase, as orders rose 1.7%.