Demand For Durable Goods Falls 0.4%, Snapping Four-Month Growth Streak

New orders for durable goods in the U.S. slipped 0.4% in September, breaking a four-month streak of growth, according to new U.S. Census Bureau data.

Shipments for new goods were up by $1.1 billion, but it was offset by an equal decline in orders of capital goods. Orders for goods, including computers, cars and household appliances, were down from where they were in August. When defense goods are included in the tally, total orders fell by 2%.

However, each category has seen growth in terms of orders and shipments since the same time last year.

Capital defense goods, transportation equipment and metals saw increases from August. Defense aircraft parts had 104.3% growth in new orders, followed by other defense capital goods at 28.4%.

New figures for August were revised downward by 1.3%, bringing this down from the previous gain of 1.8%.

These new figures highlight a continuing trend of high demand and a gap in supply that has been unable to meet it. The COVID-19 pandemic has worsened this situation by squeezing global supply chains and creating persistent labor shortages across sectors that push manufacturing costs higher.