US Durable Goods Orders Fall For 2nd Month

New orders for US manufactured durable goods fell 1.1 percent month-over-month in May of 2017, following an upwardly revised 0.9 percent drop in April. Figures came worse than market expectations of a 0.9 percent decline, mainly driven by a 3.4 percent slump in transport equipment. Non-defense capital goods orders excluding aircraft, seen as a proxy for business spending plans decreased 0.2 percent.
US Census Bureau | Joana Taborda | joana.taborda@tradingeconomics.com 6/26/2017 12:38:31 PM
Excluding transportation, new orders increased 0.1 percent. Excluding defense, new orders decreased 0.6 percent. 

Shipments of manufactured durable goods in May, up following two consecutive monthly decreases, increased $1.8 billion or 0.8 percent to $234.9 billion. This followed a 0.3 percent April decrease. Transportation equipment, up following four consecutive monthly decreases, led the increase, $1.5 billion or 1.9 percent to $78.8 billion. 

Unfilled orders for manufactured durable goods in May, down following two consecutive monthly increases, decreased $2.3 billion or 0.2 percent to $1,120.1 billion. This followed a 0.2 percent April increase. Transportation equipment, also down following two consecutive monthly increases, drove the decrease, $3.4 billion or 0.4 percent to $762.8 billion. 

Inventories of manufactured durable goods in May, up ten of the last eleven months, increased $0.7 billion or 0.2 percent to $395.4 billion. This followed a 0.2 percent April increase. Computers and electronic products, up nine of the last ten months, led the increase, $0.1 billion or 0.3 percent to $44.3 billion. 

Nondefense new orders for capital goods in May decreased $1.7 billion or 2.4 percent to $68.3 billion. Shipments increased $0.3 billion or 0.4 percent to $70.1 billion. Unfilled orders decreased $1.8 billion or 0.3 percent to $695.0 billion. Inventories decreased less than $0.1 billion or virtually unchanged to $176.8 billion.

Defense new orders for capital goods in May decreased $0.8 billion or 8.2 percent to $9.2 billion. Shipments increased less than $0.1 billion or 0.3 percent to $10.2 billion. Unfilled orders decreased $1.1 billion or 0.8 percent to $140.4 billion. Inventories increased less than $0.1 billion or 0.1 percent to $22.5 billion. 

US Durable Goods Orders Fall For 2nd Month