‘Big Ticket’ Orders Soar 6% on Transport, Defense
Orders for “big ticket” durable goods soared 6% in August on the strength of big jumps in the military and transportation sectors, the government said today.
The Commerce Department said total orders jumped to a seasonally adjusted $123.1 billion last month. The big jump follows a huge 7.4% decline in July, the biggest in more than four years, and an 8.7% increase in June, which was the largest in 30 months.
Orders for transportation equipment in August were up by 20.9%, with more than half the increase for motor vehicles and parts. Auto orders had been weak in July as factories were switching over to a new model year.
That follows a 22.4% plunge in July and a 33.3% gain in June. The transportation category has been buffeted back and forth in recent months by big swings in orders for aircraft, ships and tanks.
Orders for defense goods jumped 15.3% in August to $8.1 billion, following a 49.4% drop in July and a 68.3% increase in June. This category, which is also very volatile from month to month, overlaps transportation and includes military planes, tanks and ships.
Excluding defense goods, orders rose 5.4% last month, following a decline of 2.2% in July and an increase of 4.2% in June.
Excluding transportation, orders rose 1% in August, fell 0.9% in July and rose 0.7% in June.