US Durable Goods Orders Worse than Forecasts


New orders for US manufactured durable goods slumped 1.7 percent month-over-month in April of 2018, following an upwardly revised 2.7 percent rise in March. It compares with market expectations of a 1.4 percent drop as orders for transportation equipment tumbled 6.1 percent. However, orders for non-defense capital goods excluding aircraft, a proxy for business spending, jumped 1 percent, reversing from a 0.9 percent decrease in March.

Transportation equipment, also down following two consecutive monthly increases, drove the decrease, $5.6 billion or 6.1 percent to $87.1 billion. Excluding transportation, new orders increased 0.9 percent. Excluding defense, new orders decreased 1.9 percent.

Shipments of manufactured durable goods in April, down following eight consecutive monthly increases, decreased $0.1 billion or 0.1 percent to $246.7 billion. This followed a 0.7 percent March increase. Transportation equipment, down following three consecutive monthly increases, drove the decrease, $1.8 billion or 2.1 percent to $82.8 billion.

Unfilled orders for manufactured durable goods in April, up five of the last six months, increased $5.5 billion or 0.5 percent to $1,153.4 billion. This followed a 0.8 percent March increase. Transportation equipment, also up five of the last six months, led the increase, $4.2 billion or 0.5 percent to $796.2 billion.

Inventories of manufactured durable goods in April, up seventeen of the last eighteen months, increased $1.2 billion or 0.3 percent to $401.7 billion. This followed a 0.2 percent March increase. Fabricated metal products, up fifteen of the last sixteen months, led the increase $0.4 billion or 0.8 percent to $52.0 billion. 

Nondefense new orders for capital goods in April decreased $5.7 billion or 6.8 percent to $78.6 billion. Shipments decreased $3.6 billion or 4.6 percent to $74.1 billion. Unfilled orders increased $4.5 billion or 0.6 percent to $713.9 billion. Inventories increased $0.8 billion or 0.5 percent to $176.1 billion. Defense new orders for capital goods in April increased $0.3 billion or 3.1 percent to $11.0 billion. Shipments increased $1.4 billion or 12.9 percent to $12.0 billion. Unfilled orders decreased $1.1 billion or 0.7 percent to $144.7 billion. Inventories decreased $0.3 billion or 1.4 percent to $22.2 billion.

 US Durable Goods Orders Worse than Forecasts


US Census Bureau | Joana Taborda | joana.taborda@tradingeconomics.com
5/25/2018 12:42:52 PM