U.S. durable goods orders unexpectedly increase in August, indicating revival of capital investment momentum | Reuters

2023-09-27 14:45:00

According to durable goods order statistics for August released by the US Department of Commerce on the 27th, orders for non-defense capital goods (core capital goods) excluding aircraft, which are a leading indicator of capital investment, increased by 0.9% from the previous month. Photographed at the U.S. Boeing factory in March 2019 (2023 Reuters/Lindsey Wasson)

[ワシントン ２７日 ロイター] – According to durable goods order statistics for August released by the US Department of Commerce on the 27th, orders for non-defense capital goods (core capital goods) excluding aircraft, which are a leading indicator of capital investment, increased by 0.9% from the previous month. Economists polled by Reuters had forecast flat growth.

Although the unexpected increase likely reflects rising prices due to rising inflation, it is a sign of economic resilience and signs that business investment, which slumped early in the third quarter, is regaining momentum.

“The U.S. economy is surprisingly resilient,” said Priscilla Tiagamoati, senior economist at BMO Capital Markets in Toronto.

The figure for July was revised downward from an increase of 0.1% to a decrease of 0.4%.

Orders for durable goods in August increased by 0.2% from the previous month. This exceeded economists’ expectations for a 0.5% decline. The figure for July was revised downward from a 5.2% decline to a 5.6% decline.

In addition to a steady 0.5% increase in orders for machinery, orders for electrical equipment, home appliances, and parts soared by 1.1%. Orders for computer and electronic products increased by 0.3%. Metal processed products increased by 0.5%.

Meanwhile, orders for primary metals decreased by 0.6%. Orders for transportation equipment fell 0.2%, affected by a 15.9% decline in bookings for commercial aircraft.

Orders for automobiles and parts increased by 0.3%.

Shipments of core capital goods, which are used to calculate capital investment in gross domestic product (GDP), rose 0.7%. In July, it was down 0.3%. Shipments of non-defense capital goods increased by 1.2%.

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