Durable Goods Orders Rise Sharply in August Despite Continued Supply Constraints
By John McCormick
Orders for appliances, computers, cars and other durable goods
increased in August, though factory operators continued to confront
parts and labor shortages as well as higher material costs.
New orders for products meant to last at least three years
increased 1.8% to a seasonally adjusted $263.5 billion in August as
compared with July, the Commerce Department said Monday, marking
the biggest increase since May. Economists surveyed by The Wall
Street Journal had forecast a 0.6% increase.
Orders increased 0.5% in July from the prior month, up from an
earlier estimate for that month that had shown a 0.1% decline.
Demand for durable goods has increased in 15 of the last 16 months
after an April 2020 low point.
Deplenished business and retail inventories have translated to
increased demand for manufacturers, but supply-chain bottlenecks
continue to constrain production and delay some shipments. The
Delta variant of Covid-19, which started its surge earlier during
the summer, presents another threat.
New orders for nondefense capital goods excluding
aircraft--so-called core capital-goods, a closely watched proxy for
business investment-- were up 0.5% in August compared with the
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(END) Dow Jones Newswires
September 27, 2021 09:08 ET (13:08 GMT)
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