US Durable Goods Orders Drop Less than Expected


New orders for US manufactured durable goods fell 0.6 percent month-over-month in May 2018, following a downwardly revised 1 percent drop in April while markets were expecting a bigger 1 percent decline. Transportation equipment led the decrease. Meanwhile, orders for non-defense capital goods excluding aircraft, a proxy for business spending plans, slipped 0.2 percent last month, after jumping by 2.3 percent in April.

Demand for transport equipment went down 1 percent (vs -6.1 percent in April), led by motor vehicles and parts (-4.2 percent vs 1.2 percent) and nondefense aircraft and parts (-7 percent vs -30.3 percent). Also, orders fell for fabricated metal products (-1.2 percent vs 3.3 percent); primary metals (-0.4 percent vs 2.4 percent); electrical equipment, appliances, and components (-1.5 percent vs 2.1 percent); and computers and electronic products (-0.1 percent vs 1.9 percent). On the other hand, demand for machinery rose 0.3 percent in May, after a 1.7 percent advance in the previous month.

Excluding transportation, new orders decreased 0.3 percent. Excluding defense, new orders decreased 1.5 percent.

Shipments of manufactured durable goods in May, down following nine consecutive monthly increases, decreased $0.2 billion or 0.1 percent to $246.9 billion. This followed a virtually unchanged April increase. Transportation equipment, down two consecutive months, drove the decrease, $0.5 billion or 0.6 percent to $82.1 billion. 

Unfilled orders for manufactured durable goods in May, up six of the last seven months, increased $5.9 billion or 0.5 percent to $1,160.6 billion. This followed a 0.6 percent April increase. Transportation equipment, also up six of the last seven months, led the increase, $4.0 billion or 0.5 percent to $800.3 billion.

Inventories of manufactured durable goods in May, up eighteen of the last nineteen months, increased $1.1 billion or 0.3 percent to $403.0 billion. This followed a 0.3 percent April increase. Transportation equipment, up five of the last six months, led the increase $0.5 billion or 0.4 percent to $129.0 billion.

Nondefense new orders for capital goods in May decreased $1.6 billion or 2.0 percent to $77.1 billion. Shipments increased $2.3 billion or 3.0 percent to $76.4 billion. Unfilled orders increased $0.7 billion or 0.1 percent to $714.5 billion. Inventories increased $0.4 billion or 0.2 percent to $176.6 billion. Defense new orders for capital goods in May increased $1.7 billion or 15.1 percent to $13.3 billion. Shipments decreased $0.5 billion or 4.4 percent to $11.5 billion. Unfilled orders increased $1.8 billion or 1.2 percent to $147.0 billion. Inventories increased $0.1 billion or 0.5 percent to $22.4 billion.

US Durable Goods Orders Drop Less than Expected


US Census Bureau | Joana Ferreira | joana.ferreira@tradingeconomics.com
6/27/2018 12:46:51 PM