US Durable Goods Orders Rise the Most in Almost a Year


New orders for US manufactured durable goods jumped 2 percent from a month earlier in June 2019, reversing a 2.3 percent plunge in May and easily beating market expectations of a 0.7 percent growth.

Demand for machinery increased the most in nearly 1-1/2 years (2.4 percent vs 0.2 percent in May) and that for transport equipment rebounded sharply (3.8 percent vs -7.5 percent), led by civilian aircraft (75.5 percent vs -52.2 percent) and motor vehicles and parts (3.1 percent vs 0.9 percent), while orders for defense aircraft and parts tumbled (-32.1 percent vs -20.8 percent). Demand also rose for primary metals (0.8 percent vs -0.7 percent), fabricated metal products (2.1 percent vs 0.5 percent), computers and electronic products (0.4 percent vs 0.7 percent), and electrical equipment, appliances, and components (0.1 percent vs 1.3 percent).

Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, climbed 1.9 percent in June, after a 0.3 percent advance in May.

Excluding transportation, new orders rose 1.2 percent (vs 0.5 percent in May). Excluding defense, new orders jumped 3.1 percent (vs -1.2 percent in May).

Shipments of manufactured durable goods in June, up two consecutive months, increased $3.5 billion or 1.4 percent to $258.2 billion. This followed a 0.5 percent May increase. Transportation equipment, also up two consecutive months, led the increase, $2.6 billion or 3.1 percent to $88.8 billion.

Unfilled orders for manufactured durable goods in June, down four of the last five months, decreased $7.8 billion or 0.7 percent to $1,160.4 billion. This followed a 0.8 percent May decrease. Transportation equipment, also down four of the last five months, drove the decrease, $8.3 billion or 1.0 percent to $792.6 billion.

Inventories of manufactured durable goods in June, up eleven of the last twelve months, increased $1.3 billion or 0.3 percent to $425.8 billion. This followed a 0.5 percent May increase. Transportation equipment, also up eleven of the last twelve months, led the increase, $1.1 billion or 0.8 percent to $139.6 billion.

Nondefense new orders for capital goods in June increased $3.3 billion or 4.8 percent to $72.1 billion. Shipments increased $1.1 billion or 1.5 percent to $77.3 billion. Unfilled orders decreased $5.1 billion or 0.7 percent to $691.6 billion. Inventories increased $1.2 billion or 0.6 percent to $189.2 billion. Defense new orders for capital goods in June decreased $2.1 billion or 16.3 percent to $10.8 billion. Shipments decreased less than $0.1 billion or 0.3 percent to $13.0 billion. Unfilled orders decreased $2.2 billion or 1.4 percent to $157.1 billion. Inventories increased $0.3 billion or 1.3 percent to $23.8 billion.

US Durable Goods Orders Rise the Most in Almost a Year


US Census Bureau | Joana Ferreira | joana.ferreira@tradingeconomics.com
7/25/2019 12:53:19 PM