Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Economic Watch: Durable Goods Orders, Consumer Confidence Both Fall

A stretch of recently leaner times for at least one part of the nation’s manufacturing sector could be nearing an end, despite a new report showing lower new orders.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
October 27, 2015
Economic Watch: Durable Goods Orders, Consumer Confidence Both Fall

 

3 min to read


A stretch of recently leaner times for at least one part of the nation’s manufacturing sector could be nearing an end, despite a new report showing lower new orders, as a key economic indicator turned nearly positive from the month before.

Ad Loading...

The U.S. Commerce Department said on Tuesday an advance report shows orders for durable goods fell 1.2% in September from the month before, while the August level was revised downward showing a 3% drop. The September decline was the fourth out of the past six months.

Ad Loading...

This sector, which includes items designed to last at least three years, was led by a 2.9% decline in new transportation orders.

In contrast, shipments of durable goods, up three out of the last four months, increased 0.2% in September from the month before, following an August 0.5% drop that was also revised slightly downward.

Shipments also were led by transportation, up 0.6%, the third increase out of the past four months.

Of special notice was the 0.3% drop in orders for nondefense capital goods excluding aircraft, an indicator of future business investment. This followed a 1.6% decline in August, worse than the first reported 0.8% drop. The corresponding shipments measure rose 0.5%, following a revised 0.8% August decline that was originally a 0.4% drop.

However, RBC Economics pointed out that even with declines in August and September, orders of nondefense capital goods increased an annualized rate 6.2% in the third quarter, marking the first increase in the measure in a year.

Ad Loading...

“The corresponding shipments component rose 2.2% in the third quarter after inching up 0.3% in second quarter and falling 4.4% in first quarter, while a continued widening in the capital goods trade deficit suggests that sales growth to domestic purchasers has been somewhat stronger,” said Nathan Janzen, senior economist. “Today’s report remains broadly consistent with our monitoring for a 7.5% gain in real third quarter equipment investment.”

Even with the improvement in this area, the overall report, coupled with others recently, likely means an interest rate hike is off the table as the Federal Reserve meets this week, according to Lindsey Piegza, chief economist at Stifel Fixed Income.

“This morning's larger-than-expected decline in durable orders is the latest in the slew of disappointing figures suggesting the underlying momentum of the U.S. economy is slowing markedly, taking the likelihood of a rate hike in October off the table, or by the end of the year for that matter,” she said.

The Fed is set to make is announcement Wednesday afternoon as to whether it is increasing rates.

Consumers Less Happy Than Last Month

A separate report also released Tuesday shows a drop in consumers’ feeling about the economy, according to one private research group.

Ad Loading...

The Conference Board Consumer Confidence Index, which had increased moderately in September, declined in October to 97.6, down from 102.6 the month before.

“Consumers were less positive in their assessment of present-day conditions, in particular the job market, and were moderately less optimistic about the short-term outlook," said Lynn Franco, director of economic indicators at The Conference Board. "Despite the decline, consumers still rate current conditions favorably, but they do not anticipate the economy strengthening much in the near term."

The Present Situation Index fell from 120.3 last month to 112.1 in October, while the Expectations Index edged down to 88.0 from 90.8 in September.

“Households’ optimism over recent months has been buoyed by a sanguine assessment of current conditions that had masked uncertainty over future economic prospects, although the resilience of the former came under pressure in October,” said Laura Cooper, economist at RBC Economics. “Overall, as firms continue to hire, housing activity strengthens and low gas prices persist, we anticipate that consumer confidence will resume an upward trend, thereby supporting consumer spending sustaining a near 3% annualized rate of increase over the coming quarters.”


More Fleet Management

Illustration showing generic graphs and stylized trucking fleet
Fleet Managementby StaffMarch 24, 2026

ACT: Trucking Volumes Rise, Capacity Tightens as Fuel Prices Cloud Outlook

ACT Research data shows volumes hitting a four-year high and supply-demand balance strengthening, but higher oil prices are undercutting tariff relief and tempering optimism.

Read More →
People looking at Wabash display at TMC
Fleet Managementby News/Media ReleaseMarch 23, 2026

Wabash Teams Physical Security With Digital Tech For Better Cargo Visibility

The patent-pending cargo solution integrates a digitally connected cargo door and an intelligent locking system with the TrailerHawk.AI technology platform.

Read More →
Cyberstop column header depicting images related to cybersecurity and rising oil prices
Fleet Managementby Ben WilkensMarch 20, 2026

From Diesel Prices to Cyberattacks: How the Iran War Is Affecting Trucking

The impact of the Iran conflict extends beyond fuel costs, bringing more fraud and cybersecurity risks to the trucking industry.

Read More →
Ad Loading...
ATA President Chris Spear.
Fleet Managementby Jack RobertsMarch 17, 2026

ATA’s Spear Warns Fuel Prices, Trade Policy, and Global Conflict Could Stall Trucking Recovery

Speaking at the TMC Annual Meeting in Nashville, ATA President Chris Spear said trucking faces mounting pressure from rising fuel prices, geopolitical instability, and uncertainty around trade policy.

Read More →
Illustration of author headshot with black-and-white old-fashioned rig in the background

New Entrants, Chameleon Carriers, and Safety: Is It Too Easy to Start a Trucking Company?

More than 100,000 new trucking companies enter the industry each year, but regulators manage to audit only a fraction of them. That churn creates opportunities for inexperienced startups — and for “chameleon carriers” that shut down after safety violations and reappear under new identities. Read more from Deborah Lockridge in this commentary.

Read More →
Panel discussion
Fleet Managementby Deborah LockridgeMarch 12, 2026

Fleet Managers Invited to Apply for Exclusive HDT Exchange Event

HDTX is an intimate event that connects heavy-duty trucking fleet managers with industry suppliers through small-group discussions, educational sessions, and structured one-on-one meetings.

Read More →
Ad Loading...
DAT iPhone Widget.
Fleet Managementby News/Media ReleaseMarch 12, 2026

DAT Launches iPhone Widget to Help Owner-Operators Find Loads Faster

New DAT One feature shows top-paying loads directly on an iPhone’s home screen, helping carriers react faster to spot-market opportunities.

Read More →
Optimal Dynamics Scale screen shot
Fleet Managementby News/Media ReleaseMarch 12, 2026

Optimal Dynamics Launches AI System to Help Carriers Choose Better Freight

Optimal Dynamics says its new Scale platform uses AI agents and optimization to help carriers find and secure freight that improves network balance and profitability.

Read More →
DAT March 2026 trucking conditions.
Fleet Managementby Jack RobertsMarch 12, 2026

DAT: Flatbed Demand Climbs as Van and Reefer Rates Soften

DAT Freight & Analytics data shows tightening flatbed capacity, easing produce markets, and softening van and reefer rates.

Read More →
Ad Loading...
YouTube thumbnail with Mike Roeth of NACFE saying "NACFE's Messy Middle: Which Fuel Wins?"
Fuel Smartsby Deborah LockridgeMarch 11, 2026

Run on Less “Messy Middle” Data Shows Multiple Paths Forward for Truck Powertrains [Watch]

NACFE's Run on Less - Messy Middle project demonstrates the power of data in helping to guide the future of alternative fuels and powertrains for heavy-duty trucks.

Read More →