US durable goods orders fall in August on less jet contracts

Orders for durable goods in the US fell by a record 18.2% in August, having previously registered a record 22.5% increase in July.

Fluctuation in demand for airplanes was the main factor contributing to the fall, with orders rising 0.7% and business investment also increasing once the volatile transportation sector is omitted from the equation.

Motor vehicle orders also spiked by 10.0% month-on-month in July only to fall back by 6.4% month-on-month in August, while non-defence capital goods orders excluding aircraft increased by 0.6% in August, after falling 0.2% in July.

Orders had been forecasted to fall by a seasonally adjusted 17.3% but, despite the heavier-than-expected fall, the underlying strength in capital goods orders and shipments in August indicates that business investment in equipment continues to expand at a healthy pace in the third quarter.