US Durable Goods Orders Fall More than Expected


New orders for US manufactured durable goods declined 1.7 percent from a month earlier in July 2018, following a downwardly revised 0.7 percent advance in June and compared with market expectations of a 0.5 percent drop. Transportation equipment drove the decrease as volatile demand for civilian aircraft fell.

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.

US Durable Goods Orders Fall More than Expected


US Census Bureau | Joana Ferreira | joana.ferreira@tradingeconomics.com
8/24/2018 12:54:59 PM