U.S. Durable Goods Orders Drop While Consumer Confidence Slips: Economic Caution Grows

Today, Tuesday, August 26, 2025, two key economic indicators offered fresh insights into the health of the U.S. economy. The Commerce Department released new data on Durable Goods Orders for July, while the Conference Board published the latest Consumer Confidence Index for August.

Durable Goods Orders

According to the Commerce Department, orders for durable goods—products meant to last at least three years—declined by 2.8% in July. The drop was largely attributed to a sharp fall in aircraft orders, a typically volatile category. Excluding transportation, orders increased by 1.1% from the previous month. Notably, sectors such as machinery, electrical equipment, and metals posted gains, suggesting that manufacturing outside of transportation remains robust.

Despite the gains in several sectors, many businesses are proceeding with caution, delaying major purchases amid ongoing policy uncertainties and global market volatility. Analysts note that continued growth outside transportation points to underlying strength in U.S. manufacturing.

Consumer Confidence

The Conference Board reported that its Consumer Confidence Index declined for a third consecutive month, falling to 97.4 in August. While assessments of current conditions remained steady, consumers expressed increased concern about the outlook for jobs and income. The proportion of respondents who said jobs are "hard to get" reached its highest point since early 2021, signaling rising anxiety over labor market conditions.

Despite growing unease, the survey found that consumers felt somewhat better about their family finances and that overall business conditions remained stable. However, intentions to spend on discretionary items such as travel and dining have weakened.

Economic Impact

Economists say the combination of softer durable goods orders and declining consumer confidence points to heightened caution among both businesses and households. Although core areas of the economy remain resilient, a continued slide in sentiment and investment could slow economic growth heading into the fall.

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This article is for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or investment strategy. The information contained herein is derived from publicly available sources believed to be reliable, but its accuracy and completeness are not guaranteed. Any opinions or estimates expressed are those of the author as of the date of publication and are subject to change without notice. Investors are urged to consult their own financial advisors before making any investment decisions. Past performance is not indicative of future results. Neither the author nor the publisher assumes any liability for any loss that may result from reliance on the information presented in this article.

Sources

https://www.census.gov/manufacturing/m3/adv/pdf/durgd.pdf‍https://kpmg.com/us/en/articles/2025/july-2025-durable-goods.html‍https://www.census.gov/manufacturing/m3/adv/current/index.html‍https://tradingeconomics.com/united-states/durable-goods-orders‍https://fred.stlouisfed.org/series/DGORDER‍https://www.upi.com/Top_News/US/2025/08/26/consumer-confidence-dipped-august/9421756225209/‍https://www.reuters.com/business/aerospace-defense/us-business-spending-equipment-resilient-labor-market-confidence-weakening-2025-08-26/‍https://www.conference-board.org/topics/consumer-confidence/‍https://www.fxstreet.com/news/when-is-the-us-durable-goods-orders-data-and-how-it-could-affect-eur-usd-202508261039