27 October 2005, 16:55  U.S. durable goods orders down sharply in Sept

Orders for new U.S.-made durable goods fell 2.1% in September, the second drop in the past three months, the Commerce Department said Thursday. The decline was broad-based. There was a sharp drop in aircraft orders. Only orders for metals and machinery increased in September. Economists were expecting orders to fall 1.1%, according to a survey conducted by MarketWatch. . Durable orders in August were revised to a 3.8% increase from 3.4% previously estimated. Shipments of durable goods increased 0.1% in September after a 2.3% gain in August. Inventories of durable goods fell 0.1% in September and have declined in three of the past four months. Orders for core capital goods equipment fell 1.2% in September. Shipments of core goods fell 0.1%. Durable goods are long-lived products, such as airplanes, cars, washing machines, and machine tools. Orders are carefully watched for clues about the direction of both consumer and business spending. In September, orders for transportation goods had the largest decline, falling 4.7%, including a 41.6% drop in aircraft orders, which offset a 4.7% rise in motor vehicle orders. Shipments of transportation goods decreased 0.6%. Excluding transportation, orders fell 1.0% in September, the second drop in the past three months. Excluding defense, durable goods fell 2.1% in September. Orders for electronics excluding semiconductors fell 3.6% as orders for communications equipment fell 5.4%. Orders for computers fell 6.8%. Shipments of electronics fell 0.6%. Orders for machinery increased 1.0% while shipments rose 1.8%. Orders for electrical equipment fell 3.5%, while shipments fell 0.6% Orders for fabricated metals decreased 1.2%, while shipments rose 0.8%. Orders for primary metals rose 0.5% while shipments rose 2.1%. Unfilled orders of durable goods rose 0.7% in September, which is the fifth straight monthly increase.

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