After two consecutive months of growth, new orders for manufactured durable goods decreased $4.8 million or 2% to $236.3 billion in August, according to the U.S. Department of Commerce.
During the growth in June and July, transportation equipment led the way, but the same sector was a major driving force in August’s retraction. Transportation equipment decreased by $4.8 billion, or 5.8%, to $78.7 billion.
Shipments of manufactured durable goods also fell, albeit slightly, in August, sliding by $100 million. Primary metals, which have been down in ten of the last 11 months, experienced a 1% dip to $20.5 billion $1.9 billion of the increase.
Unfilled orders regressed by $2.2 billion or 0.2% to $1.2 billion following a 0.2% increase in July.
In addition, nondefense new orders for capital goods decreased by $1.6 billion or 2.0% to $80.4 billion, while defense new orders for capital goods dropped 24.3% to reach $8.6 billion during the month.
Inventories for durable goods actually increased in August, boosting up by $100 billion after a 0.2% decrease in July. Despite being a major drag on new orders, transportation equipment drove the increase in inventories, rising by $900 million or 0.7% to $132.5 billion.