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.

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


US Census Bureau | Joana Taborda | joana.taborda@tradingeconomics.com
7/27/2017 12:44:11 PM