Motor vehicle and parts orders fell 3.8% in the U.S. in October as the automotive industry contended with UAW strikes at a number of U.S. factories owned by General Motors, Ford and Chrysler parent Stellantis.
Orders for U.S. durable goods, a key indicator for North American metalworking shops, fell more than expected in October as orders for motor vehicles and parts slipped amid strikes by the United Auto Workers (UAW) union against Detroit’s “Big Three” automakers.
Orders for durable goods, which are items ranging from refrigerators and toasters to aircraft and cars meant to last three years or more, dropped 5.4% last month. In addition the U.S. Commerce Department’s Census Bureau said that September’s figures were not quite as strong as initially reported. It revised the figure to show orders for durable goods rising 4.0% in September instead of the previously reported 4.6%.
Economists polled by Reuters had forecast durable goods orders would decline 3.1%. Transportation equipment orders fell 14.8% in October after increasing 11.6% in September and motor vehicle and parts orders fell 3.8% as the automotive industry contended with UAW strikes at a number of U.S. factories owned by General Motors, Ford and Chrysler parent Stellantis.
Despite the drop from September to October, however, durable goods orders rose 4.0% on a year-over-year basis in October.