Last month, durable goods orders fell 0.4%, seasonally adjusted, from August, the Commerce Department reported, but September’s decline was less severe than in August. analysts had predicted.
A 2.3% drop in transport orders led to the drop, according to the data, orders for non-military jets, such as Boeing jets, falling 27.9% in the month.
However, excluding the transport sector, overall orders rose 0.4%, which Oxford Economics’ Oren Klachkin called “a sign that many companies have remained optimistic about the economic outlook even though the Delta variant continued to spread across the country “.
The effects of the global semiconductor shortage can be seen in the data, with orders for motor vehicles and parts plunging 2.9% as automakers continue to struggle to keep assembly lines running in against a backdrop of a shortage of critical computer chips.
The overall decline would have been worse without the defense sector, where orders for aircraft and parts jumped 104.3% and capital goods by 28.4%.
Excluding defense, overall orders are said to have declined 2%, the Commerce Department said.
Rubeela Farooqi of High Frequency Economics predicted that demand will continue to support the manufacturing sector even as bottlenecks in the global supply chain create challenges in the months to come.
“The trend of orders should remain positive as inventories remain low. But for the manufacturing sector, bottlenecks and supply shortages are key constraints that are expected to persist in the short term,” she said. stated in an analysis.
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