Fragile October for durable goods

New orders for manufactured durable goods sank $12.7 billion, or 6.2%, in October after a 0.2% decrease in September, the Department of Commerce reported today. The manufacturing sector suffered declines across the board, driven by a $6.1 billion, or 11.1%, decrease in transportation equipment orders. Shipments fell for the third consecutive month, this time, by $5 billion or 2.4%. Unfilled orders dropped for the first time in over two years, by $4.6 billion or 0.6%. Unfilled orders for primary metals declined $2.8 billion or 10.9%, which the Commerce Department noted was the greatest decrease since 1992. As spending decreased, inventories increased 0.4% following a 0.2% increase in September. October’s copious inventories of $341.1 billion are at the highest level recorded since they were first quantified in 1992. Transportation equipment inventories increased the most, by $1.3 billion or 1.5% in October, with the result that automakers have been seeking aid from Washington this month. (InvestmentNews, Nov. 20)