·
Durable goods orders fell 0.4% in October led lower by declines in
orders for motor vehicles and capital goods. A 0.5% gain in orders had
been the Consensus expectation.
· Nondefense capital goods orders dropped 3.3% as orders for computers & electronic products were dragged 5.7% (+3.7% y/y) lower by a 10.3% (+7.0% y/y) decline in orders for computers. Electrical equipment & appliance orders also were down by 3.5% (+2.2% y/y), the second consecutive monthly decline.
· Transportation equipment orders rose 0.3% but the gain was wholly due to a 35.2% (-17.2% y/y) spurt in defense aircraft. Motor vehicle & parts orders fell 2.8% (-3.2% y/y) and nondefense aircraft orders fell 0.4% (-1.6% y/y) following huge declines during the prior two months. Durable goods orders less transportation fell 0.7% (+9.6% y/y).
· Orders for machinery were again quite strong logging a 3.7% m/m gain (+24.7% y/y). fabricated metals orders also rose by 3.1% (+13.1% Y/Y).
·
Unfilled
orders rose 0.6% (8.6% y/y) but the ratio of backlogs to shipments fell.
· Inventories of durable goods 0.5% (6.5% y/y). The inventory to shipment ratio was about stable at 1.39, up from the low of 1.35 in March but well down from the highs near 1.7 in 2001.