–Ex Defense -1.1%; Civ Aircraft Orders -25.5% as Boeing Orders Fall
By Joseph Plocek
WASHINGTON (MNI) – The September durable goods data were about as
expected and show uneven underlying improvement that could be bolstered
ahead by corporate spending.
September durables orders printed -0.8%, about as expected, but
were up 1.7% excluding transportation. The latter is now up in four of
last five months, indicating some momentum in the factory sector.
Also, orders were -1.1% excluding defense and are down in three of
the last four months in this sector. This illustrates the importance of
federal spending as an economic support.
Boeing Corp. had 59 new orders for civilian aircraft, after posting
127 in August, and the Commerce Department reported a somewhat lesser
drop of 25.5% for new civilian aircraft orders. Motor vehicles printed
-2.7%, completing the picture of weakness in transportation.
However, ex-transport orders were solid and included primary
metals at +2.6%, machinery +1.8%, computers +1.0%, and electronics
+1.9%. So this was a decent report.
Shipments printed -0.7%, and Inventories +0.1%.
Nondefense capital goods shipments fell 1.2% after posting +3%
in August and +1.4% in July. The quarter’s gain shows that Q3
business capital spending will be higher in the GDP accounts.
Nondefense capital goods new orders ex-civilian aircraft printed
+2.4% after seesawing, its best gain since +5.4% in March. This could be
an indication that capital spending will continue at a good clip, no big
surprise since corporations are flush with cash and remain in the black
in the latest quarterly earnings reports.
Year-to-date, new orders are up 9.4% and shipments up 7.7% over
last year’s totals.
**Market News International Washington Bureau: (202)371-2121**
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