I apologize in advance for the title... it's a Friday and I'm in a weird mood. WSJ details:
Demand for U.S. manufactured durable goods tumbled more than expected in August, held back by steep drops in airplanes and cars.August was not as bad as the headline figure would indicate... without non-defense aircraft, durable goods were up 0.6% and without all transportation, durable goods were up 2%.
Durable-goods orders declined by 1.3% to a seasonally adjusted $191.17 billion, the Commerce Department said Friday. This is the biggest drop since August 2009.
Economists surveyed by Dow Jones Newswires expected a 1.0% decline. Friday's report was mixed, as there were gains in machinery, computers and fabricated metal products. Also, a barometer of capital spending by businesses rose; orders for nondefense capital goods excluding aircraft increased by 4.1%.
Still, overall transportation equipment orders dropped 10.3% in August -- restrained by a 40.3% decline in orders for nondefense aircraft and parts. Motor vehicles and parts were also down, falling 4.4%.
HOWEVER, the overall trend is ugly with the three month change in durable goods new orders down -0.8% and only two categories showing growth (electronics [thanks Apple!] and fabricated metals).