US Durable Goods Orders Rise More than Expected


New orders for US manufactured durable goods rose 2.1 percent from a month earlier in July 2019, the most since August last year, following a downwardly revised 1.8 percent gain and beating market expectations of a 1.2 percent increase. Transportation equipment, up for two consecutive months, drove the increase. Meanwhile, demand for machinery declined.

Demand for transport equipment jumped 7.0 percent, after increasing 4.1 percent in the prior month, led by a rebound in defense aircraft and parts (34.4 percent vs -38.1 percent) while orders for civilian aircraft (47.8 percent vs 101.4 percent) and motor vehicles and parts (0.5 percent vs 2.7 percent) slowed. Demand also advanced for electrical equipment, appliances, and components (1.1 percent vs 0.8 percent) and rebounded for computers and electronic products (0.2 percent vs -1.5 percent). On the other hand, orders dropped for machinery (-0.6 percent vs 1.7 percent), primary metals (-1.0 percent vs 0.5 percent), and fabricated metal products (-0.9 percent vs 2.1 percent).

Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, went up 0.4 percent, easing from a 0.9 percent rise in June.

Excluding transportation, new orders decreased 0.4 percent (vs 0.8 percent in June).  Excluding defense, new orders increased 1.4 percent (vs 3.1 percent in June).

Shipments of manufactured durable goods in July, down following two consecutive monthly increases, decreased $2.9 billion or 1.1 percent to $254.0 billion. This followed a 1.0 percent June increase. Transportation equipment, also down following two consecutive monthly increases, led the decrease, $1.8 billion or 2.1 percent to $86.4 billion.

Unfilled orders for manufactured durable goods in July, up following three consecutive monthly decreases, increased $0.7 billion or 0.1 percent to $1,161.6 billion. This followed a 0.6 percent June decrease. Fabricated metal products, up two consecutive months, led the increase, $0.4 billion or 0.4 percent to $86.5 billion.

Inventories of manufactured durable goods in July, up twelve of the last thirteen months, increased $1.5 billion or 0.4 percent to $427.3 billion. This followed a 0.3 percent June increase. Transportation equipment, also up twelve of the last thirteen months, led the increase, $1.4 billion or 1.0 percent to $141.1 billion.   

Nondefense new orders for capital goods in July increased $3.6 billion or 5.0 percent to $75.8 billion. Shipments decreased $2.3 billion or 3.0 percent to $74.4 billion.  Unfilled orders increased $1.4 billion or 0.2 percent to $693.6 billion.  Inventories increased $1.4 billion or 0.7 percent to $190.5 billion. Defense new orders for capital goods in July increased $1.5 billion or 14.4 percent to $11.8 billion. Shipments decreased $0.3 billion or 2.3 percent to $12.6 billion. Unfilled orders decreased $0.8 billion or 0.5 percent to $155.9 billion. Inventories increased $0.3 billion or 1.3 percent to $24.0 billion.

US Durable Goods Orders Rise More than Expected


US Census Bureau | Stefanie Moya | stefanie.moya@tradingeconomics.com
8/26/2019 1:00:09 PM