Economy
Durable Goods Orders Plummet in July
Written by Sandy Williams
August 27, 2017
Durable goods orders fell 6.8 percent in July, their largest margin since August 2014, as orders for volatile aircraft orders plummeted. Orders for civilian aircraft plunged 70.7 percent after a 129.3 percent surge in June. Transportation equipment orders in total dropped 19.0 percent.
The drop in July was expected by economists after the strong gains in June. Durable goods are items expected to last for three or more years; orders for such goods are a measure of consumer confidence. Excluding transportation, orders rose 0.5 percent.
Core capital goods, which exclude defense and aircraft and are an indicator of future business spending, increased 0.4 percent.
The report from the Commerce Department follows:
New Orders
New orders for manufactured durable goods in July decreased $16.7 billion or 6.8 percent to $229.2 billion, the U.S. Census Bureau announced today. This decrease, down three of the last four months, followed a 6.4 percent June increase. Excluding transportation, new orders increased 0.5 percent. Excluding defense, new orders decreased 7.8 percent. Transportation equipment, also down three of the last four months, drove the decrease, $17.4 billion or 19.0 percent to $74.3 billion.
Shipments
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
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
Inventories of manufactured durable goods in July, up 12 of the last 13 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.
Capital Goods
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.
Revised June Data
Revised seasonally adjusted June figures for all manufacturing industries were: new orders, $481.4 billion (revised from $481.1 billion); shipments, $471.9 billion (revised from $471.5 billion); unfilled orders, $1,135.6 billion (revised from $1,135.7 billion) and total inventories, $649.4 billion (revised from $649.1 billion).
Sandy Williams
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