US Durable Goods Orders Fall More than Expected


New orders for US manufactured durable goods shrank 2.2 percent in May from April of 2016, following a downwardly revised 3.3 percent rise in the previous period. Figures came worse than market expectations of a 0.5 percent decline, dragged down mainly by transport equipment. Core capital goods orders, a proxy for business spending fell 0.7 percent.

Excluding transportation, new orders decreased 0.3 percent and excluding defense, new orders fell 0.9 percent.

Transportation equipment, also down following two consecutive monthly increases, led the decrease, $4.8 billion or 5.6 percent to $81.9 billion. 

Shipments of manufactured durable goods in May, down three of the last four months, decreased $0.5 billion or 0.2 percent to $231.7 billion. This followed a 0.4 percent April increase. Transportation equipment, also down three of the last four months, led the decrease, $0.4 billion or 0.5 percent to $80.0 billion. 

Unfilled orders for manufactured durable goods in May, up four of the last five months, increased $2.0 billion or 0.2 percent to $1,139.4 billion. This followed a 0.6 percent April increase. Transportation equipment, up three consecutive months,led the increase, $1.9 billion or 0.2 percent to $785.2 billion. 

Inventories of manufactured durable goods in May, down ten of the last eleven months, decreased $1.1 billion or 0.3 percent to $382.5 billion. This followed a 0.4 percent April decrease. Machinery, down nine of the last ten months, led the decrease, $0.5 billion or 0.8 percent to $65.4 billion.

Nondefense new orders for capital goods in May decreased $0.6 billion or 0.8 percent to $73.8 billion. Shipments increased $0.8 billion or 1.2 percent to $72.8 billion. Unfilled orders increased $1.1 billion or 0.2 percent to $708.6 billion. Inventories decreased $0.6 billion or 0.3 percent to $171.3 billion.
Defense new orders for capital goods in May decreased $3.7 billion or 28.0 percent to $9.5 billion. Shipments increased $0.2 billion or 2.1 percent to $9.8 billion. Unfilled orders decreased $0.3 billion or 0.2 percent to $140.3 billion. Inventories decreased $0.1 billion or 0.3 percent to $20.8 billion. 

 US Durable Goods Orders Fall More than Expected


US Census Bureau | Joana Taborda | joana.taborda@tradingeconomics.com
6/24/2016 1:49:24 PM