Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Economic Watch: Durable Goods Decline, Services Sector Remains Strong

Shipments of manufactured durable goods fell 1.5% from July following a 3.7% increase in July from June. An overall decline of this amount was expected, according to a poll of economists.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
Read Evan's Posts
September 25, 2014
Economic Watch: Durable Goods Decline, Services Sector Remains Strong

 

3 min to read


Shipments and orders for long-lasting goods both declined in August, according to a new U.S. Commerce Department report.

Shipments of manufactured durable goods fell 1.5% from July following a 3.7% increase in July from June. A decline in transportation shipments led the drop, falling 5.1%.

Ad Loading...

New orders for manufactured durable goods fell sharply by 18.2% in August from the month before, following a surge in aircraft orders. This followed a 22.5% downwardly revised gain in July from June. A 42% drop in transportation orders led the falloff.

An overall decline of this amount was expected, according to a poll of economists.

Excluding the volatile transportation sector, new orders increased 0.7% in August. Excluding defense orders it posted a 19% gain.

“After an outsized rise in July, this morning's decline in the August report mostly offsets last month's gain,” said Lindsey Piegza, chief economist at the investment firm Sterne Agee. “Excluding transportation, however, orders growth appears to be slightly stronger than expected in August, an encouraging sign that businesses may be slightly more confident as we head further into the third quarter."

However, she noted, in general, business spending continues to be uneven, “rendering the underlying trend in investment still indeterminable at this point.” Further stability in growth and consumer spending will continue to encourage businesses to expand and hire,” she said.

Ad Loading...

Meantime, a separate report that measures the health of the nation’s service sector fell slightly last month but remains in positive territory.

The Flash U.S. Services PMI Business Activity Index, from the financial services information provider Markit, posted 58.5 in September, down from 59.5 in August but still well above the neutral threshold.

PMI readings above 50 signal an improvement in business conditions, while readings below 50 indicate deterioration.

The index pointed to a robust expansion of overall business activity, though at the lowest level since May. However, on average over the third quarter of 2014, the index indicates the fastest service sector output expansion in the survey’s five-year history.

A separate services index, also posted by Markit for September, showed similar results.

Ad Loading...

“The U.S. economy is enjoying its strongest spell of growth since the financial crisis, according to the PMI surveys. Although the pace of expansion slowed to a four-month low in services in September, the rate remained buoyant and accompanies a similar boom seen in manufacturing,” said Chris Williamson, chief economist at Markit. “Taken together, the two PMI surveys have posted the highest quarterly average seen since data were first collected in 2009 in the three months to September.

He said the U.S. economy looks set to have expanded at an annualized pace of around 3.5% in the third quarter.

“Inflows of new work are in fact so strong that companies are unable to fulfill [service] orders with current workforce numbers,” said Williamson. “Backlogs of work showed the largest rise in survey history as a result, prompting companies across both sectors to boost payroll numbers to the greatest extent since June.”

More Fleet Management

2026 Mack Anthem rolls off the assembly line
Fleet Managementby News/Media ReleaseFebruary 3, 2026

Mack Financial Services Launches Physical Damage Insurance For All Makes

Mack Financial Services has introduced the Rolling Asset Program, offering physical damage insurance for all makes and models within a customer's fleet.

Read More →
Illustration of phishing email with trucks in background
Fleet Managementby News/Media ReleaseFebruary 3, 2026

New Phishing Scheme Targets Motor Carriers, FMCSA Warns

Beware of a new phishing scheme targeting motor carriers. Scammers are sending emails posing as FMCSA or DOT officials to steal data.

Read More →
Daimler-Class8 partnership.
Fleet Managementby News/Media ReleaseFebruary 2, 2026

DTNA Partners with Class8 to Expand Digital Services for Freightliner Owner-Operators

A new partnership brings free wireless ELD service plus load optimization and dispatch planning tools to fourth- and fifth-generation Freightliner Cascadia customers, with broader model availability planned through 2026.

Read More →
Ad Loading...
SponsoredFebruary 1, 2026

Reducing Fleet Downtime with Advanced Diagnostics

This white paper examines how advanced commercial vehicle diagnostics can significantly reduce fleet downtime as heavy duty vehicles become more complex. It shows how Autel’s CV diagnostic tools enable in-house troubleshooting, preventive maintenance, and faster repairs, helping fleets cut emissions-related downtime, reduce dealer dependence, and improve overall vehicle uptime and operating costs.

Read More →
SponsoredFebruary 1, 2026

Stop Watching Footage, Start Driving Results

6 intelligent dashcam tactics to improve safety and boost ROI

Read More →
M&A illustration with Werner and FirstFleet logos
Fleet Managementby Deborah LockridgeJanuary 29, 2026

Werner Expands Dedicated Fleet Nearly 50% With FirstFleet Acquisition

The $283 million acquisition of FirstFleet makes Werner the fifth-largest dedicated carrier and pushes more than half of its revenue into contract freight.

Read More →
Ad Loading...
Bobit Business Media B2X Rewards.
Fleet Managementby News/Media ReleaseJanuary 29, 2026

Bobit Business Media Launches B2X Rewards Engagement Program

B2X Rewards is a new, gamified rewards program aimed at driving deeper engagement across BBM’s digital platforms, newsletters, events, and TheFleetSource.com.

Read More →
Trucking Trends series graphic
Fleet Managementby Deborah LockridgeJanuary 29, 2026

AI is Reshaping Trucking in 2026, from the Back Office to the Shop

Trucking’s biggest technology shifts in 2026 have one thing in common: artificial intelligence.

Read More →
Column graphic illustration with Deborah Lockridge head shot and a small fleet truck in the background
Fleet Managementby Deborah LockridgeJanuary 27, 2026

Why Small Trucking Fleets Are Still Standing [Commentary]

Why discipline, relationships, and focus have mattered more than size for smaller trucking fleets during the freight recession.

Read More →
Ad Loading...
Fleet Managementby Deborah LockridgeJanuary 23, 2026

Cargo Theft Is Surging. A Bill in Congress Could Help. [Video]

Cargo theft losses hit $725 million last year. In this HDT Talks Trucking Short Take video, Scott Cornell explains how a bill moving in Congress could bring federal tracking, enforcement, and prosecutions to help address the problem.

Read More →