MNI DATA IMPACT: US August Durable Orders Up 0.2%, Above-Expected>

--August New Orders Excluding Transportation Rise 0.5%

By Alexandra Kelley       

     WASHINGTON (MNI) - Durable goods orders came in higher than 

expected in August at 0.2% versus the initial -1.1% estimated decrease. 

This marks an increase for the third consecutive month, largely 

driven by fabricated metal products orders, which spiked up to 1.3% in 

August from -0.8% in July. 

     While August durable goods came in above expected, July 

durables remained unrevised from the initial 2.0% gain. This gain comes 

despite trade tensions and the threat of global manufacturing slowdowns. 

     Orders excluding transportation rebounded from a -0.5% slowdown in 

July to a 0.5% increase new orders in August, above the 0.2% reading 

expected by markets.   

     Here are some of the other key takeaways from the data released 

Friday: 

     - The durable goods orders increase was largely due to a 1.3% jump 

in fabricated metal orders, and was further bolstered by a 1.5% rise in 

primary metal orders in August from a significantly slower rate of -1.1% 

in July.  

     - Durables shipments rose by 0.1% along with a 0.3% increase in 

inventories. Machinery shipments posted a strong 1.6% increase, and 

inventories were driven up by the transportation equipment and 

nondefense aircraft and parts sectors. 

     - Nondefense capital goods new orders were down -2.1% in August, 

and saw a 0.4% gain when excluding aircraft. Nondefense capital goods 

shipments, however, ticked up slightly to 0.2% in the month from -2.8% 

in July, while shipments ex. aircraft were up 0.4%.

               ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]