U.S. Durable Goods Orders Down 0.5 Percent As Aircraft Orders Slide

WASHINGTON, Sept 24 (AFP) - Orders for big-teicket US durable goods fell 0.5 percent in August, dragged down by a 42.8 percent drop in orders for civilian airplanes, the Commerce Department said Friday.
Excluding the 6.8 percent drop in orders for transportation goods, however, orders for big-ticket items expected to last at least three years rose 2.3 percent, the biggest increase since March.
Orders had increased a revised 1.8 percent in July and 1.3 percent in June. Orders are up 12.4 percent year over year.
Demand for durable goods -- which includes items such as cars, plans and refrigerators -- are a key leading indicator of the nation's economic health. But the monthly numbers can be very volatile, in part because aircraft orders can vary widely.
The report "shows that the manufacturing recovery is progressing, but not without high volatility in individual sectors," said Daniel Meckstroth, chief economist for the Manufacturers Alliance/MAPI.
"Manufacturing continues to grow faster than the general economy."
Other analysts said the report was mixed.
"The report is pretty firm but it does not point to much job growth ahead," said Robert Brusca, chief economist for FAO Economics.
Ken Mayland, president of ClearView Economics, disagreed, pointing to double-digit growth in shipments and orders.
"These numbers are begging for the employment of more production workers," he said,
The report showed orders for core capital goods -- excluding both defense goods and civilian aircraft -- fell 0.5 percent in August, but for the past year they were up 12.6 percent. Core capital goods orders are the best monthly indicator of demand for business investment goods.
Outside of transportation, most sectors recorded healthy gains in orders and shipments. Machinery and primary metals, two of the strongest sectors over the past year, were exceptions, lagging in August. Orders for computers and electronics rose 4.1 percent for August, while shipments increased one percent.
Orders for motor vehicles increased 5.7 percent, while shipments increased five percent.