US August durable goods unexpectedly fall 0.5 pct, second decline in a row

Orders or big-ticket manufactured goods in the US fell unexpectedly in August, the second consecutive monthly decline, as demand for aircraft, computers and electronic products weakened. New orders for durable goods fell by 0.5 pct in August after falling a downwardly revised 2.7 pct in July. New orders for durable goods have not fallen in two consecutive months since April and May 2004. Economists had expected orders to rise 0.4 pct in August. July's decline had previously been estimated at 2.5 pct. Much of the weakness came from a 21.9 percent drop in demand for commercial aircraft and a 4.7 pct drop in demand for computers and electronic equipment. Excluding transportation goods such as aircraft, durable goods orders fell 2 pct in August after remaining flat in July. Excluding defense goods, durables fell 0.8 pct in August after falling 2.2 pct in the prior month. Inventories of durable goods rose 0.2 pct in August, the seventh rise in eight months. Shipments of durable goods rose 1.9 pct in August.