MNI DATA IMPACT: US September Durable Orders Fall -1.1%>

--September New Orders Excluding Transportation Down -0.3%

By Alexandra Kelley and Brooke Migdon 

     WASHINGTON (MNI) - Durable goods orders slowed to a four-month low 

in September, falling 1.1% amid trade policy uncertainty and a drop-off 

in capital spending. August durable goods orders were also revised down 

to a 0.3% increase from a previously reported 0.5% gain.

     Nondefense aircraft orders declined 11.8% as the uptick in sales 

this month (25 in Sept vs 6 in Aug) was still not enough to push new 

orders into positive territory. Boeing's 737 Max also continues to be 

grounded.    

     Orders excluding transportation recorded a drop as well, but at a 

more modest pace than the headline number. All the major subcategories 

posted losses in the month.  

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

Thursday: 

     - The sharp decline in new orders was facilitated by a continued 

decline in transportation orders and a slowdown in capital goods orders. 

The GM-UAW strike which began mid-September likely negatively impacted 

goods feeding into auto maintenance, such as steel and motor vehicle 

parts, both of which posted losses.   

     - Durables shipments fell by -0.4%, but inventories increased 

by 0.5% while unfilled orders posted a flat reading.

     - Nondefense capital goods new orders were down by 2.8% in 

September and saw an additional 0.5% drop excluding aircraft. Nondefense 

capital goods shipments were down 0.1% in the month, while shipments ex. 

aircraft remained unchanged. 

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

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