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
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.

Ad Loading...

“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.

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.

Ad Loading...

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.

“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

Illustration of a chalkboard with a hand drawing an arrow curving away from a partially erased straight arrow with the words "Embracing Change," the Heavy Duty Trucking Logo and the "cover feature" graphic.
Fleet Managementby Deborah LockridgeAugust 1, 2026

How Innovative Trucking Leaders Turn Change Into an Advantage

As the pace of change accelerates in trucking, the fleets that adapt best have more than the latest technology. They have cultures that embrace improvement.

Read More →
Illustration of past due invoices with red X on top with background of a truck at a loading dock
Fleet ManagementJuly 27, 2026

Freight Broker Bonds Just Got Harder to Get. Here's What That Means for Your Fleet.

When it gets harder for a freight broker to prove they are financially sound, the ones who cannot clear that bar get pushed out of the market. And those are exactly the brokers who used to leave motor carriers holding the bag.

Read More →
Photo of cable bridge crossing Detroit River
Fleet Managementby Deborah LockridgeJuly 23, 2026

Long-Awaited Canadian Border Bridge to Open in Detroit

For trucking, the bridge opening should offer immediate improvements in efficiency and reliability, with new customs facilities, expanded inspection capacity, and direct freeway-to-freeway connections.

Read More →
Ad Loading...
Blue International heavy-duty truck with Aurora driverless truck software coming head-on on an interstate highway
Equipmentby Deborah LockridgeJuly 22, 2026

Aurora Rolls Out Next Generation of Driverless Trucks for Commercial Freight

Aurora's latest autonomous trucks it's rolling out with International feature lower-cost hardware designed for a million miles as the company expands commercial driverless freight operations across the U.S. Sun Belt.

Read More →
American Trucking Associations for-hire tonnage graph
Fleet Managementby Deborah LockridgeJuly 21, 2026

Freight Tonnage Down, Rates up, as Lower Capacity Powers Trucking Recovery

The recovery from the freight recession continues to be driven by reduction in capacity rather than by increased demand.

Read More →
Cyberstop column header depicting images of ChatGPT prompt on a smartphone and shadowy hooded figure
Fleet Managementby Ben WilkensJuly 17, 2026

Think Your Trucking Fleet Isn't Using Much AI? Think Again

Shadow AI — the use of unauthorized artificial intelligence tools at work — is becoming increasingly common, putting sensitive company data at risk. Learn how trucking fleets can protect sensitive data while embracing AI.

Read More →
Ad Loading...
Photo of semi trucks with Panther, ArcBest, and ABF trailers backed up to docks, with ArcBest logo superimposed on top
Fleet Managementby Deborah LockridgeJuly 17, 2026

ArcBest Consolidates Brands, Cuts Workforce

The company will bring three business units under the ArcBest brand, eliminate about 2% of positions, and expects the changes to generate $40 million in annual savings.

Read More →
Cover of ATRI operational costs study with graph clip art and photo of trucks on highway in the background
Fleet Managementby Deborah LockridgeJuly 15, 2026

Trucking Fleets Faced Record Operating Costs During Third Year of Freight Recession

ATRI's annual operational cost report shows carriers trimmed fleets, delayed equipment purchases, and ran older trucks as expenses continued to outpace freight rates.

Read More →
Micheline AI Assistant.

Michelin Adds AI Assistant to MyConnectedFleet Platform

Michelin’s new generative AI tool delivers instant fleet insights, helping managers analyze fuel use, tire maintenance, vehicle status, and operational performance without manually creating reports.

Read More →
Ad Loading...
LytxOne Platform.

LytxOne Platform Now Features AI, Compliance, and Asset Tracking Tools

New enhancements add AI-powered insights, asset tracking, compliance automation, and configurable privacy controls to Lytx's all-in-one fleet management platform.

Read More →