US Durable Goods Orders Fall More than Expected


New orders for US manufactured durable goods slumped 6.8 percent month-over-month in July of 2017, offsetting a downwardly revised 6.4 percent rise in June which was the highest gain in nearly three years. Figures compare with market expectations of a 6 percent fall. Orders for transport equipment shrank 19 percent, with those for motor vehicles falling 1.2 percent. However, non-defense capital goods orders excluding aircraft, seen as a proxy for business spending plans increased 0.4 percent, following a flat reading in June.

Transportation equipment, also down three of the last four months, drove the decrease, $17.4 billion or 19.0 percent to $74.3 billion. Excluding transportation, new orders rose 0.5 percent. Excluding defense, new orders decreased 7.8 percent.

Shipments of manufactured durable goods in July, up three consecutive months, increased $1.0 billion or 0.4 percent to $237.4 billion. This followed a virtually unchanged June increase. Transportation equipment, up two of the last three months, led the increase, $0.4 billion or 0.5 percent to $79.2 billion. 

Unfilled orders for manufactured durable goods in July, down two of the last three months, decreased $3.8 billion or 0.3 percent to $1,131.8 billion. This followed a 1.3 percent June increase. Transportation equipment, also down two of the last three months, drove the decrease, $4.8 billion or 0.6 percent to $772.2 billion.

Inventories of manufactured durable goods in July, up twelve of the last thirteen months, increased $1.3 billion or 0.3 percent to $398.8 billion. This followed a 0.5 percent June increase. Transportation equipment, up following two consecutive monthly decreases, led the increase, $0.6 billion or 0.5 percent to $129.6 billion. 

Nondefense new orders for capital goods in July decreased $17.1 billion or 20.2 percent to $67.5 billion. Shipments increased $1.4 billion or 2.0 percent to $72.6 billion. Unfilled orders decreased $5.0 billion or 0.7 percent to $704.5 billion. Inventories decreased $0.4 billion or 0.2 percent to $177.5 billion. Defense new orders for capital goods in July increased $1.5 billion or 14.7 percent to $11.7 billion. Shipments increased $0.3 billion or 3.2 percent to $10.3 billion. Unfilled orders increased $1.4 billion or 1.0 percent to $142.2 billion. Inventories increased $0.7 billion or 3.2 percent to $23.2 billion. 

US Durable Goods Orders Fall More than Expected


US Census Bureau | Joana Taborda | joana.taborda@tradingeconomics.com
8/25/2017 12:46:20 PM