New orders for US manufactured durable goods fell 1.3 percent from a month earlier in May 2019, after a revised 2.8 percent plunge in April and worse than market expectations of a 0.1 percent drop. Transportation equipment, down three of the last four months, drove the decrease.
Demand for transport equipment slumped 4.6 percent in May (vs -7.6 percent in April), led by civilian aircraft (-28.2 percent vs -39.3 percent) and defense aircraft and parts (-15.3 percent vs -4.3 percent), while orders for motor vehicles and parts rebounded (0.6 percent vs -3.2 percent). Demand also fell for electrical equipment, appliances, and components (-0.4 percent vs 1.0 percent) and fabricated metal products (-0.4 percent vs 0.8 percent). Meanwhile, increases were recorded in demand for machinery (0.7 percent vs 0.2 percent), computers and electronic products (0.8 percent vs -0.6 percent), and primary metals (0.4 percent vs -2.4 percent).
Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, rose 0.4 percent in May, after declining 1.0 percent in April.
Excluding transportation, new orders rose 0.3 percent (vs -0.1 percent in April). Excluding defense, new orders declined 0.6 percent (vs -3.3 percent in April).
Shipments of manufactured durable goods in May, up following two consecutive monthly decreases, increased $0.9 billion or 0.4 percent to $254.1 billion. This followed a 1.6 percent April decrease. Machinery, up four of the last five months, led the increase, $0.4 billion or 1.1 percent to $33.4 billion.
Unfilled orders for manufactured durable goods in May, down three of the last four months, decreased $6.4 billion or 0.5 percent to $1,171.2 billion. This followed a 0.2 percent April decrease. Transportation equipment, also down three of the last four months, led the decrease, $5.8 billion or 0.7 percent to $803.6 billion.
Inventories of manufactured durable goods in May, up ten of the last eleven months, increased $2.1 billion or 0.5 percent to $424.6 billion. This followed a 0.4 percent April increase. Transportation equipment, also up ten of the last eleven months, drove the increase, $2.1 billion or 1.6 percent to $138.4 billion.
Nondefense new orders for capital goods in May decreased $1.7 billion or 2.3 percent to $70.8 billion. Shipments increased $0.3 billion or 0.5 percent to $76.1 billion. Unfilled orders decreased $5.3 billion or 0.8 percent to $698.7 billion. Inventories increased $1.9 billion or 1.0 percent to $188.1 billion. Defense new orders for capital goods in May decreased $1.2 billion or 7.8 percent to $13.9 billion. Shipments increased $0.1 billion or 0.5 percent to $13.0 billion. Unfilled orders increased $0.9 billion or 0.5 percent to $160.3 billion. Inventories increased $0.1 billion or 0.4 percent to $23.5 billion.
6/26/2019 12:53:35 PM