US orders for durable goods - - defined as those expected to last at least three years  - - rose during September, the fourth increase in six months, while a key measure of capital goods spending -  - items meant to last 10 years or longer - - rose strongly at 3.7%  - - a positive sign of recovery in US manufacturing.

New Orders

New orders for manufactured durable goods in September increased $1.6 billion or 1.0 percent to $165.7 billion, the US Census Bureau announced today. This was the second increase in the last three months. It followed a 2.6 percent August decrease. Excluding transportation, new orders increased 0.9 percent. Excluding defense, new orders increased 0.5 percent.

Machinery, up five of the last six months, had the largest increase, $1.7 billion or 7.9 percent to $23.4 billion.

Shipments

Shipments of manufactured durable goods in September, up three of the last four months, increased $1.3 billion or 0.8 percent to $172.6 billion. This followed a 1.4 percent August decrease. Transportation equipment, also up three of the last four months, had the largest increase, $2.4 billion or 5.6 percent to $44.9 billion. This was led by nondefense aircraft and parts, which increased $1.4 billion.

Unfilled Orders

Unfilled orders for manufactured durable goods in September, down twelve consecutive months, decreased $3.3 billion or 0.4 percent to $733.6 billion. This was the longest streak of consecutive monthly decreases since the series was first published on  the present basis in 1992 and followed a 0.4 percent August decrease. Transportation equipment, down eleven of the last twelve months, had the largest decrease, $4.8 billion or 1.1 percent to $426.3 billion.

Inventories

Inventories of manufactured durable goods in September, down nine consecutive months, decreased $3.1 billion or 1.0 percent to $305.0 billion. This followed a 1.5 percent August decrease. Transportation equipment, down two consecutive months, had the largest decrease, $2.0 billion or 2.2 percent to $89.1 billion.

Capital Goods

Nondefense new orders for capital goods in September increased $1.3 billion or 2.5 percent to $53.6 billion.

Shipments increased $1.2 billion or 2.2 percent to $56.6 billion. Unfilled orders decreased $3.0 billion or 0.7 percent to $419.6 billion. Inventories decreased $2.3 billion or 1.7 percent to $132.4 billion. Defense new orders for capital goods in September increased $1.0 billion or 10.0 percent to $10.9 billion.

Shipments increased $0.5 billion or 5.1 percent to $11.3 billion. Unfilled orders decreased $0.4 billion or 0.3 percent to $140.3 billion. Inventories decreased $0.4 billion or 1.8 percent to $19.8 billion.