U.S. July Durable Goods Orders Drop at Steepest Rate Since 2020

By Ed Frankl

Orders for longer-lasting goods fell by the largest rate in more than three years in July, and by more than expected, indicating a substantial weakening in demand for manufactured goods.

New orders for products meant to last at least three years, including appliances, computers, cars and other manufactured goods, decreased 5.2% in July from a month earlier to a seasonally adjusted $285.9 billion, the Commerce Department said Thursday.

The drop, the steepest by percentage since April 2020, snaps four straight months of rises in durable-goods orders, including a revised increase of 4.4% in June.

Economists surveyed by The Wall Street Journal forecast a 4.1% fall in July.

Excluding defense categories, new orders tumbled 5.4%, led by a more than 14% drop in orders of transportation equipment. Stripping out transportation, new orders were up 0.5%.

New orders for nondefense capital goods excluding aircraft, a closely watched proxy for business investment, rose 0.1% on month to $73.63 billion.

Write to Ed Frankl at edward.frankl@wsj.com

(END) Dow Jones Newswires

August 24, 2023 09:05 ET (13:05 GMT)

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