US Durable Goods Orders Rebound Weaker than Expected


New orders for US manufactured durable goods rose 1 percent month-over-month in June 2018, following a downwardly revised 0.3 percent drop in May and missing market expectations of a 3 percent jump. Transportation equipment led the increase.

Demand for transport equipment went up 2.2 percent (vs -1.4 percent in May), led by motor vehicles and parts (4.4 percent vs -4.5 percent) and nondefense aircraft and parts (4.3 percent vs -11.6 percent). Also, orders rose for machinery (0.2 percent vs 1.7 percent); fabricated metal products (0.1 percent vs -1.2 percent); electrical equipment, appliances, and components (1.5 percent vs -0.5 percent); and computers and electronic products (0.6 percent, the same as in May). On the other hand, demand for primary metals dropped 0.4 percent in June (-0.1 percent in May); and that for defense capital goods slumped 11.6 percent (vs 16.7 percent in May).

Excluding transportation, new orders increased 0.4 percent (vs 0.3 percent in May). Excluding defense, new orders grew 1.5 percent (vs -1.4 percent in May).

Shipments of manufactured durable goods in June, up ten of the last eleven months, increased $4.1 billion or 1.7 percent to $251.6 billion. This followed a 0.2 percent May increase. Transportation equipment, up following two consecutive monthly decreases, led the increase, $3.1 billion or 3.8 percent to $85.3 billion.

Unfilled orders for manufactured durable goods in June, up seven of the last eight months, increased $4.4 billion or 0.4 percent to $1,165.1 billion. This followed a 0.5 percent May increase. Transportation equipment, also up seven of the last eight months, led the increase, $2.4 billion or 0.3 percent to $802.3 billion.

Inventories of manufactured durable goods in June, down following seventeen consecutive monthly increases, decreased $0.4 billion or 0.1 percent to $402.8 billion. This followed a 0.3 percent May increase. Transportation equipment, down following two consecutive monthly increases, drove the decrease, $1.8 billion or 1.4 percent to $126.9 billion. 

Nondefense new orders for capital goods in June increased $1.8 billion or 2.3 percent to $78.6 billion. Shipments increased $1.8 billion or 2.3 percent to $78.4 billion. Unfilled orders increased $0.2 billion or virtually unchanged to $714.2 billion. Inventories decreased $1.7 billion or 1.0 percent to $174.8 billion. Defense new orders for capital goods in June decreased $1.6 billion or 11.6 percent to $12.0 billion. Shipments decreased $0.1 billion or 0.7 percent to $11.5 billion. Unfilled orders increased $0.5 billion or 0.3 percent to $147.7 billion. Inventories increased $0.4 billion or 1.9 percent to $22.9 billion.

US Durable Goods Orders Rebound Weaker than Expected


US Census Bureau | Joana Ferreira | joana.ferreira@tradingeconomics.com
7/26/2018 12:45:23 PM