Durable Goods Orders Jump on Defense Spending

-edited

Durable goods orders jumped 0.6% in October thanks to a surge in defense spending.

Economists at Econoday expected a 0.7% decline in durable goods orders in October. Instead, orders rose 0.6% but from negative revisions.

The Census Bureau revised September from -1.1% to -1.4% and defense spending did the rest.

New Orders

New orders for manufactured durable goods in October increased $1.5 billion or 0.6 percent to $248.7 billion, the U.S. Census Bureau announced today. This increase, up four of the last five months, followed a 1.4 percent September decrease. Excluding transportation, new orders increased 0.6 percent. Excluding defense, new orders increased 0.1 percent. Fabricated metal products, up two of the last three months, led the increase, $0.6 billion or 1.8 percent to $34.1 billion.

Shipments

Shipments of manufactured durable goods in October, up following three consecutive monthly decreases, increased less than $0.1 billion or virtually unchanged to $251.6 billion. This followed a 0.7 percent September decrease. Machinery, up two of the last three months, drove the increase, $0.3 billion or 1.0 percent to $33.1 billion.

Unfilled Orders

Unfilled orders for manufactured durable goods in October, up three of the last four months, increased $1.4 billion or 0.1 percent to $1,164.8 billion. This followed a virtually unchanged September decrease. Transportation equipment, up four consecutive months, led the increase, $0.9 billion or 0.1 percent to $795.5 billion.

Inventories

Inventories of manufactured durable goods in October, up fifteen of the last sixteen months, increased $1.4 billion or 0.3 percent to $432.0 billion. This followed a 0.5 percent September increase. Transportation equipment, also up fifteen of the last sixteen months, drove the increase, $1.8 billion or 1.3 percent to $147.4 billion.

Capital Goods

Nondefense new orders for capital goods in October increased $2.2 billion or 3.2 percent to $73.3 billion. Shipments increased $1.0 billion or 1.4 percent to $75.1 billion. Unfilled orders decreased $1.8 billion or 0.3 percent to $688.2 billion. Inventories increased $1.4 billion or 0.7 percent to $195.8 billion. Defense new orders for capital goods in October increased $2.3 billion or 16.6 percent to $16.2 billion.

Shipments

increased $0.2 billion or 1.2 percent to $13.0 billion. Unfilled orders increased $3.2 billion or 2.0 percent to $161.4 billion. Inventories increased $0.4 billion or 1.5 percent to $24.3 billion.

Military Spending

Military spending led the increase in orders and the surge in capital goods as well.

Hooray?!

Mike "Mish" Shedlock

Comments (8)
No. 1-6
Jojo
Jojo

I guess this is a good thing? After all, more "defense" (offense?) spending that builds more killing weapons to either use ourselves or to sell to others, keeps workers employed and collecting paychecks in the Military-Industrial complex.

I bring this up after reading the Politico story below, where an argument against M4A is that in simplifying medical insurance and making healthcare available to many others not presently covered, would result in the loss of many [make work] jobs! Sheeze.

Medicare for All’s jobs problem The big Democratic talking point has a big political weakness: It could wipe out thousands of jobs in places like Pittsburgh that have built their new economies on health care. 11/25/2019 https://www.politico.com/news/agenda/2019/11/25/medicare-for-all-jobs-067781

Bam_Man
Bam_Man

A totally deformed, Frankenstein economy - kept animated (for now) by a make-believe financial system.

Zardoz
Zardoz

Just a little taste of 2019's 984 billion dollar deficit. Is America Great Again Yet?

Casual_Observer
Casual_Observer

Third quarter GDP was revised up to 2.1%. Slow growth ahead.

Tengen
Tengen

If anybody knows how to spend, it's the MIC. Those $1280 coffee mugs and $14,000 toilet seat lids add up quickly, but it's totally worth it when you get to wage Forever Wars!