US Durable Goods Orders Fall 4% in June


New orders for US manufactured durable goods slumped 4 percent in June from May of 2016, following an upwardly revised 2.8 percent drop in the previous period. It is the biggest fall since August of 2014 and much worse than market expectations of a 1.1 percent decline, dragged down mainly by transport equipment. However, non-defense core capital goods orders, a proxy for business spending edged up 0.2 percent, recovering from a 0.5 percent decline in May.

Excluding transportation, new orders decreased 0.5 percent and excluding defense, new orders decreased 3.9 percent. Transportation equipment, also down two consecutive months, led the decrease, $8.5 billion or 10.5 percent to $72.2 billion.

Shipments of manufactured durable goods in June, up two of the last three months, increased $0.9 billion or 0.4 percent to $232.5 billion. This followed a 0.3 percent May decrease. Transportation equipment, also up two of the last three months, drove the increase, $1.1 billion or 1.4 percent to $81.2 billion.

Unfilled orders for manufactured durable goods in June, down following three consecutive monthly increases, decreased $9.7 billion or 0.9 percent to $1,127.9 billion. This followed a virtually unchanged May increase. Transportation equipment, also down following three consecutive monthly increases, led the decrease, $9.0 billion or 1.1 percent to $774.9 billion.

Inventories of manufactured durable goods in June, down eleven of the last twelve months, decreased $0.7 billion or 0.2 percent to $381.5 billion. This followed a 0.4 percent May decrease. Transportation equipment, down five consecutive months, drove the decrease, $1.1 billion or 0.9 percent to $123.0 billion.

Nondefense new orders for capital goods in June decreased $8.2 billion or 11.3 percent to $64.8 billion. Shipments decreased $1.0 billion or 1.3 percent to $71.8 billion. Unfilled orders decreased $7.0 billion or 1.0 percent to $700.5 billion. Inventories decreased $1.1 billion or 0.6 percent to $169.6 billion.

Defense new orders for capital goods in June decreased $1.9 billion or 20.7 percent to $7.3 billion. Shipments increased $0.4 billion or 3.8 percent to $10.3 billion. Unfilled orders decreased $3.0 billion or 2.1 percent to $136.9 billion. Inventories decreased $0.4 billion or 1.8 percent to $20.4 billion.

US Durable Goods Orders Fall 4% in June


US Census Bureau | Joana Taborda | joana.taborda@tradingeconomics.com
7/27/2016 1:44:25 PM