Durable Goods Orders Fall in August

The number of orders placed for durable goods with U.S. manufacturers fell 0.9% in August a report by the federal government said Thursday.

In another economic report, the Labor Department said that initial jobless claims fell 19,000 to 381,000 in the week ended Sept. 20.

The decline in durables orders was led by a drop in the pace of orders for automobiles, machinery and computers, the Commerce Department said in its report. During August, U.S. manufacturers took $173.3 billion in orders for goods designed to last three years.

Excluding orders for transportation equipment, the decline in orders narrowed to 0.3%, dipping to $122.3 billion, Commerce said.

The government also issued revised orders figures for July, saying that overall durable goods orders rose 1.5% and ex-transportation orders gained 2.3% during the month.

Trucking can feel a pinch if orders for durable goods begin to decline because trucks often haul raw material, parts and finished products for manufacturers. Declines in orders can limit these shipments.

Hurricane Isabel may have affected the weekly initial jobless claims figure, analysts told Bloomberg News. Bill Sharp, a senior economist with J.P. Morgan told Bloomberg that the storm reduced claims by between 5,000 and 10,000 last week because offices were closed and workers were unable to file claims.

The four-week moving average, a device the Labor Department uses to smooth changes in the volatile weekly report fell 4,000 to 407,000, the government said.

Unemployment figures can affect consumer confidence and spending, both of which can drive orders for goods and demand for trucking services.