Commentary Directory

US Durable Goods New Orders: August 2023

Jacob Hess
September 27, 2023

US Durable Goods New Orders

9/27/2023 (August 2023)

+0.2 MoM (+4.2% YoY)


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Durable Goods (Ex-Transport) +0.4% MoM (+0.5% YoY)
Nondefense Capital Goods (Ex-Aircraft) +0.9% MoM (+2.1% YoY)

In August, US durable goods activity stabilized with a 0.2% MoM increase, marking the fifth rise in six months and a cumulative 5.1% growth in new orders, indicating resilience in the US manufacturing sector. While headline figures showed volatility, especially in transportation, most segments, including machinery, electronics, and electrical equipment, saw gains in September, with the core segment of durable goods orders witnessing a 0.9% MoM growth, supporting positive GDP growth projections.

From Census Bureau

The US manufacturing sector once again refuses to capitulate and will go into the final quarter of the year with positive momentum. This is positive momentum that analysts continue to be surprised by. Today’s release of the core segment topped the consensus estimate of no growth by a considerable margin. The unexpected expansion is a sign that manufacturers can operate under tighter financial conditions which give credence to the Fed’s insistence on “higher for longer.” It also means that the US remains on track to avoid a recession and glide into a soft landing.