Durable goods orders decline for second month, driven by transportation drop

October Durable Goods: -0.5% vs. +0.3% expected and -0.4% prior, declining for a second straight month.

Transportation equipment, down three of the last four months, powered the disappointing results, falling 2.6% to $75.3B.

Excluding transportation, new orders: +0.5% vs. +0.5% expected and +0.4% prior.

Excluding defense, new orders rose 0.8%.

Shipments of manufactured durable goods, up in five of the last six months, increased 1.5% to $261.5B, following a 0.6% rise in September

Unfilled orders for manufactured durable goods increased for a ninth straight month, rising 0.2% to $1.25T. Machinery, up 19 consecutive months, led the increase, rising 1.2% to $113.7B.

Inventories of manufactured durable goods continued to rise for a ninth consecutive month; increased 0.6% to $466.0B after a 1.05 September increase.

Nondefense new orders for capital goods fell 1.2% to $83.8B in October. Shipments fell 0.1% to $80.8B. Unfilled orders increased 0.4% and inventories rose 0.4% to $203.8B.