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Falling aircraft sales pull down durable goods orders, but there's more to the story

Feb 27, 2024
"It's by no means anywhere near as awful as the headline number makes it look," one analyst says.
“We had this extraordinary circumstance of an airplane having its door ripped off in mid-air” that skewed overall durable goods data, says John Diamond of Rice University.
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Businesses are spending to boost productivity, regardless of higher interest rates

Dec 22, 2023
Some are doing well enough that they don't need to borrow in order to expand and improve.
Core capital goods, which are big, one-off investments to improve productivity and boost the bottom line, rose 0.8% last month.
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Durable goods orders have been rising. That's great news for the economy.

Nov 22, 2023
Businesses don't buy 'em unless they think they need 'em.
If businesses are splurging on durable goods, "the economy is still expanding," said Nationwide's Kathy Bostjancic.
Frederic J. Brown/AFP via Getty Images

Aircraft orders can distort economic data. They also propel a lot of economic activity.

Sep 27, 2023
Their volatility can overshadow broader trends. But those orders are just the start of a long, expansive manufacturing supply chain.
While aircraft orders jump around month to month, the supply chain, which involves thousands of companies, never stops.
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Why U.S. factory orders just dipped after four straight months of gains

Sep 5, 2023
Order numbers are somewhat distorted by a volatile, expensive durable goods category: commercial airplanes.
"Boeing orders fell to only 52 planes in July," said Sam Stovall at CFRA Research. "That is what really dragged down the overall factory order."
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Why durable goods orders reflect consumer demand

Jun 26, 2023
This week, the Census Bureau will report how many manufactured durable goods businesses ordered in May. Many manufacturers haven't been making as many products, but certain types of equipment are still in high demand.
Orders of computers have been rising lately, as businesses try to boost productivity through investments in tech during a tight labor market.
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A surge in commercial aircraft purchases is papering over declining business investment

Apr 26, 2023
A burst of orders for Boeing in March juiced the durable goods data.
“Airlines are feeling pretty positive — both about where they are and about the future," said Brad McMillan at Commonwealth Financial Network.
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The economy's contradictory signals: more jobless claims, but more durable goods orders too

Nov 23, 2022
Rising orders for things like cars and dishwashers point to big improvements in global supply chains and few shortages, one economist says.
Orders for durable goods, which include trucks and cars, are up.
Jeff Kowalsky

Demand for manufacturing equipment continues to grow

Mar 1, 2022
Orders for core capital goods hit a 40-year high in January. That’s because demand for manufactured goods is still high.
Manufacturers have been ordering more equipment: things like metalworking tools, power generators, computers.
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As new home sales continue to rise, where are the appliances?

Oct 27, 2021
Some home builders are starting to figure out ways to adapt to shortages by stocking up and using alternative brands.
A lack of durable goods has slowed home building, but buyers have started to adapt.
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