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.

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


US Census Bureau | Joana Taborda | joana.taborda@tradingeconomics.com
6/23/2015 2:16:53 PM