US durable goods orders fell 1.7 per cent in July

WASHINGTON — Orders for long-lasting U.S. factory goods fell 1.7 per cent in July, the third decrease in the past four months.

The Commerce Department said Friday that durable goods orders — items meant to last at least three years such as autos and appliances — totalled $246.9 billion last month. Much of that decline came from a steep 35.4 per cent drop in orders for nondefense aircraft, a volatile category on a monthly basis.

For most of 2018, manufacturing has been a source of strength with durable goods orders increasing 8.6 per cent year-to-date. Excluding aircraft and non-military goods, orders rose 1.4 per cent in July, a positive sign for the economy.

Still, U.S. trade showdowns with China, the European Union, Canada and Mexico have left many manufacturers feeling uncertain about their futures. President Donald Trump has levied and threatened taxes on imports as a tool for forcing foreign countries to give the United States better terms of trade. But tariffs carry the risk of higher prices and fewer sales for manufacturers that rely on a global market.