Durable Goods Orders Off in August

Washington, DC, September 26, 2007—Durable goods orders were off 4.9% in August, after a revised 6.1% gain in July, for the biggest drop in the gauge in seven months, according to the Commerce Department.

Orders for durables excluding transportation equipment declined by 1.8% after a 3.4% gain in the prior month.

Economists were anticipating a decline of 4%. Excluding transportation were expected to fall 1%.

Orders for commercial aircraft dropped 41% during the month, after increasing 13% a month earlier.

Demand for automobiles declined 6.2% after an 11% gain in July.

Non-defense capital goods orders excluding aircraft, a proxy for future business investment, fell 0.7%, after rising 0.9% in July.

Unfilled orders for capital equipment rose 1.2%.