US Durable Goods Orders Rise the Most in 3 Years

New orders for US manufactured durable goods jumped 6.5 percent month-over-month in June of 2017, following a downwardly revised 0.1 percent drop in May and beating market expectations of a 3 percent rise. It is the biggest gain since July of 2014, boosted by a 131.2 percent surge in orders for civilian aircraft. However, non-defense capital goods orders excluding aircraft, seen as a proxy for business spending plans decreased 0.1 percent, following an upwardly revised 0.7 percent rise in May and the first drop since December.
US Census Bureau | Joana Taborda | joana.taborda@tradingeconomics.com 7/27/2017 12:44:11 PM
Excluding transportation, new orders increased 0.2 percent. Excluding defense, new orders jumped 6.7 percent.

Transportation equipment, also up following two consecutive monthly decreases, led the increase, $14.6 billion or 19.0 percent to $91.6 billion. 

Shipments of manufactured durable goods in June, down three of the last four months, decreased $0.1 billion or virtually unchanged to $236.0 billion. This followed a 1.2 percent May increase. Transportation equipment, down five of the last six months, drove the decrease, $0.4 billion or 0.6 percent to $78.8 billion. 

Unfilled orders for manufactured durable goods in June, up three of the last four months, increased $14.2 billion or 1.3 percent to $1,135.6 billion. This followed a 0.1 percent May decrease. Transportation equipment, also up three of the last four months, led the increase, $12.8 billion or 1.7 percent to $776.8 billion. 

Inventories of manufactured durable goods in June, up eleven of the last twelve months, increased $1.6 billion or 0.4 percent to $397.0 billion. This followed a 0.1 percent May increase. Machinery, up seven of the last eight months, led the increase, $0.8 billion or 1.2 percent to $68.3 billion. 

Nondefense new orders for capital goods in June increased $14.7 billion or 21.0 percent to $84.6 billion. Shipments increased $0.3 billion or 0.4 percent to $70.9 billion. Unfilled orders increased $13.8 billion or 2.0 percent to $709.8 billion. Inventories increased $1.0 billion or 0.6 percent to $177.6 billion. Defense new orders for capital goods in June increased $0.4 billion or 3.8 percent to $9.7 billion. Shipments decreased $0.2 billion or 2.2 percent to $10.0 billion. Unfilled orders decreased $0.3 billion or 0.2 percent to $140.3 billion. Inventories increased less than $0.1 billion or 0.1 percent to $22.5 billion. 

US Durable Goods Orders Rise the Most in 3 Years