New orders for manufactured durable goods in October dropped 8.3% from September, the biggest decline in more than 6 years, according to data released this week by the U.S. Census Bureau.

This followed two consecutive monthly increases, including an 8.7 percent rise in September. Transportation equipment had the largest decrease – 21.7 percent – which the Bureau said was led by declining new orders for non-defense aircraft and parts. Excluding transportation, new orders for manufactured goods fell 1.7 percent. Excluding defense, new orders decreased 6.4 percent.
The large decline prompted renewed speculation of a slowing economy, but there were also some signs of strength. Unfilled orders for manufactured durable goods increased 1.2 percent, reaching the highest level recorded under the current system, which was adopted in 1992. Also, year-to-date orders were up 8.3 percent from the same period last year.
Shipments of manufactured durable goods in October were up 0.6 percent following a 2.7 percent decline in September. Machinery shipments led the way with a 1.9 percent increase. Inventories were up 0.8 percent. For more information, visit www.census.gov.