Demand for transport equipment slumped 5.3 percent in July (vs 1.8 percent in June), led by nondefense aircraft and parts (-35.4 percent vs 1.3 percent) and defense aircraft and parts (-34.6 percent vs 19.9 percent) while orders for motor vehicles and parts continued to increase (3.5 percent vs 4.7 percent). Demand also declined for nondefense capital goods (-4.6 percent vs 2 percent); defense capital goods (-8 percent vs -12.9 percent); and electrical equipment, appliances, and components (-0.2 percent vs 1.4 percent). Orders for fabricated metal products were unchanged (vs -0.7 percent in June). Meanwhile, an increase in demand was recorded for computers and electronic products (1.1 percent vs 0.8 percent); machinery (0.6 percent vs flat reading); and primary metals (0.3 percent vs -0.6 percent).
Excluding transportation, new orders went up 0.2 percent (vs 0.1 percent in June). Excluding defense, new orders fell 1 percent (vs 1.2 percent in June).
Shipments of manufactured durable goods in July, down following two consecutive monthly increases, decreased $0.5 billion or 0.2 percent to $250.8 billion. This followed a 1.6 percent June increase. Transportation equipment, down three of the last four months, drove the decrease, $1.6 billion or 1.9 percent to $83.9 billion.
Unfilled orders for manufactured durable goods in July, up eight of the last nine months, increased $0.1 billion or virtually unchanged to $1,164.7 billion. This followed a 0.3 percent June increase. Computers and electronic products, up five consecutive months, drove the increase, $0.3 billion or 0.3 percent to $115.3 billion.
Inventories of manufactured durable goods in July, up eighteen of the last nineteen months, increased $5.0 billion or 1.3 percent to $408.3 billion. This followed a virtually unchanged June decrease. Transportation equipment, up three of the last four months, led the increase, $4.4 billion or 3.5 percent to $131.3 billion.