Durable Goods Orders Fall More Than Expected

New orders for US manufactured goods shrank 1.8 percent in May, driven by a steep decline in transportation orders. Yet, excluding transportation, orders increased 0.5 percent, rebounding from a downwardly revised 0.3 percent fall in the previous month.
US Census Bureau | Joana Taborda | joana.taborda@tradingeconomics.com 6/23/2015 2:16:53 PM
Durable goods orders were down eight out of last ten months. Transportation equipment, down three of the last four months, drove the decrease, $4.9 billion or 6.4 percent to $71.7 billion. Excluding defense, new orders decreased 2.1 percent. 

Shipments of manufactured durable goods in May, down four of the last five months, decreased $0.2 billion or 0.1 percent to $239.9 billion. This followed a 0.2 percent April decrease. Transportation equipment, also down four of the last five months, drove the decrease, $0.7 billion or 0.9 percent to $76.7 billion.

Unfilled orders for manufactured durable goods in May, down five of the last six months, decreased $5.7 billion or 0.5 percent to $1,195.5 billion. This followed a 0.2 percent April decrease. Transportation equipment, also down five of the last six months, led the decrease, $5.1 billion or 0.6 percent to $798.8 billion.

Inventories of manufactured durable goods in May, down following twenty-three consecutive monthly increases, decreased $0.8 billion or 0.2 percent to $400.6 billion. This followed a 0.2 percent April increase. Transportation equipment, down two of the last three months, led the decrease, $0.3 billion or 0.2 percent to $129.9 billion.

Nondefense new orders for capital goods in May decreased $5.2 billion or 6.6 percent to $74.3 billion. Shipments decreased $0.5 billion or 0.6 percent to $79.3 billion. Unfilled orders decreased $5.0 billion or 0.7 percent to $757.1 billion. Inventories decreased $1.1 billion or 0.6 percent to $176.2 billion. 

Defense new orders for capital goods in May increased $0.7 billion or 8.2 percent to $8.8 billion. Shipments increased less than $0.1 billion or 0.3 percent to $9.5 billion. Unfilled orders decreased $0.7 billion or 0.5 percent to $150.6 billion. Inventories decreased less than $0.1 billion or virtually unchanged to $21.6 billion.

Durable Goods Orders Fall More Than Expected