In October, the United States’ durable goods were weighed down by a lack of aircraft orders.
According to official data issued Wednesday, orders for big-ticket manufactured items fell in the United States last month, owing primarily to weakness in the aviation sector.
The Commerce Department stated that durable goods orders declined by 0.5 percent seasonally adjusted in October compared to the previous month. Overall, the numbers fell short of analyst estimates for a modest uptick.
Transportation orders declined overall due to a 14.5 percent drop in orders for new non-defense aircraft such as Boeing’s planes, which are variable month to month.
On the plus side, orders for motor vehicles and parts increased 4.8 percent in the month, another area of recent vulnerability due to semiconductor shortages that have slowed production lines.
When transportation orders were taken out of the equation, the total benchmark increased by 0.5 percent, as expected by analysts.
The data, according to Gregory Daco of Oxford Economics, are “brighter” than they appear, with orders excluding transportation “signaling a healthy business investment outlook.”
“We expect a slew of unfulfilled orders and increased demand at home and abroad to keep US factories running at full speed,” Daco added.
“However, businesses’ capacity to meet demand will be limited by production constraints, and we don’t expect to see significant supply improvements until far into 2022.”
High Frequency Economics’ Rubeela Farooqi also saw “good” progress in overall orders.
“Supply bottlenecks and shortages are major roadblocks, but the manufacturing sector has managed to work around them, and output has increased to its highest level since before the pandemic,” she said.