US Durable Goods Orders Fall More than Expected


New orders for US manufactured durable goods fell 2.1 percent from a month earlier in April 2019, reversing a downwardly revised 1.7 percent growth in March and slightly worse than market expectations of a 2 percent drop. Transportation equipment, down two of the last three months, drove the decrease.

Demand for transport equipment slumped 5.9 percent in April (vs 5.9 percent in March), led by civilian aircraft (-25.1 percent vs 7.8 percent), motor vehicles and parts (-3.4 percent vs 0.4 percent), and defense aircraft and parts (-2.4 percent vs 19 percent). Orders also fell for primary metals (-0.8 percent vs -1.9 percent) and computers and electronic products (-0.4 percent vs 2.1 percent). Meanwhile, increases were recorded in demand for electrical equipment, appliances, and components (0.9 percent vs 0.5 percent), fabricated metal products (0.4 percent vs -1.6 percent), machinery (0.1 percent vs -2 percent).

Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, dropped 0.9 percent in April, after increasing 0.3 percent in March.

Excluding transportation, new orders were unchanged (vs -0.5 percent in March). Excluding defense, new orders plunged 2.5 percent (vs 0.1 percent in March).

Shipments of manufactured durable goods in April, down three of the last four months, decreased $4.0 billion or 1.6 percent to $253.3 billion. This followed a 0.5 percent March decrease. Transportation equipment, down four consecutive months, led the decrease, $3.7 billion or 4.1 percent to $85.8 billion.

Unfilled orders for manufactured durable goods in April, down two of the last three months, decreased $0.7 billion or 0.1 percent to $1,179.1 billion. This followed a 0.1 percent March increase. Transportation
 equipment, also down two of the last three months, led the decrease, $0.4 billion or 0.1 percent to $810.6 billion.

Inventories of manufactured durable goods in April, up nine of the last ten months, increased $1.8 billion or 0.4 percent to $422.6 billion. This followed a 0.3 percent March increase. Transportation equipment, also up nine of the last ten months, led the increase, $1.5 billion or 1.1 percent to $136.1 billion.  

Nondefense new orders for capital goods in April decreased $3.9 billion or 5.0 percent to $74.0 billion. Shipments decreased $2.4 billion or 3.0 percent to $75.9 billion.  Unfilled orders decreased $2.0 billion or 0.3 percent to $705.3 billion. Inventories increased $0.9 billion or 0.5 percent to $185.9 billion. Defense new orders for capital goods in April increased $0.7 billion or 4.8 percent to $14.7 billion. Shipments increased $0.3 billion or 2.6 percent to $12.8 billion. Unfilled orders increased $1.9 billion or 1.2 percent to $159.2 billion. Inventories increased $0.1 billion or 0.6 percent to $23.4 billion.

US Durable Goods Orders Fall More than Expected


US Census Bureau | Joana Ferreira | joana.ferreira@tradingeconomics.com
5/24/2019 12:47:02 PM