US Durable Goods Orders Jump 4.4% in July


New orders for US manufactured durable goods jumped 4.4 percent in July from June of 2016, recovering from an upwardly revised 4.2 percent drop in the previous period. It is the first increase in three months and the biggest gain since October last year, beating market expectations of a 3.3 percent rise. Non-defense capital goods orders excluding aircrafts, a proxy for business spending increased 1.6 percent, the second consecutive gain.

Excluding transportation, new orders increased 1.5 percent. Excluding defense, new orders increased 3.8 percent. Transportation equipment, also up following two consecutive monthly decreases, led the increase, $7.5 billion or 10.5 percent to $78.9 billion. 

Shipments of manufactured durable goods in July, up three of the last four months, increased $0.4 billion or 0.2 percent to $232.9 billion. This followed a 0.5 percent June increase. Computers and electronic products, up four consecutive months, drove the increase, $0.4 billion or 1.5 percent to $27.1 billion. 

Unfilled orders for manufactured durable goods in July, down two consecutive months, decreased $0.8 billion or 0.1 percent to $1,126.6 billion. This followed a 0.9 percent June decrease. Transportation equipment, also down two consecutive months, drove the decrease, $1.9 billion or 0.2 percent to $772.2 billion.

Inventories of manufactured durable goods in July, up following six consecutive monthly decreases, increased $1.2 billion or 0.3 percent to $383.0 billion. This followed a 0.1 percent June decrease. Transportation equipment, up following five consecutive monthly decreases, led the increase, $0.5 billion or 0.4 percent to $123.7 billion.

Nondefense new orders for capital goods in July increased $6.6 billion or 10.2 percent to $71.6 billion. Shipments increased less than $0.1 billion or virtually unchanged to $71.7 billion. Unfilled orders decreased $0.1 billion or virtually unchanged to $700.8 billion. Inventories decreased $0.3 billion or 0.2 percent to $169.1 billion. Defense new orders for capital goods in July increased $2.5 billion or 35.7 percent to $9.6 billion. Shipments increased $0.1 billion or 1.1 percent to $10.3 billion. Unfilled orders decreased $0.8 billion or 0.6 percent to $136.0 billion. Inventories increased $0.8 billion or 3.9 percent to $21.1 billion.

US Durable Goods Orders Jump 4.4% in July


US Census Bureau | Joana Taborda | joana.taborda@tradingeconomics.com
8/25/2016 1:56:26 PM