Economy
Durable Goods Orders Rise 1 Percent in June
Written by Sandy Williams
July 25, 2018
Durable goods orders, orders for items expected to last three years or more, increased 1.0 percent in June to $251.9 billion, according to the latest data from Commerce. The increase follows two consecutive monthly decreases.
Transportation equipment orders led the gain with civilian aircraft recouping some of its 11.6 percent loss in May by jumping 4.3 percent in June. Auto and auto parts orders rose 4.4 percent, the segment’s biggest increase since March 2015 after falling 4.5 percent in May. The surge may be due to inventory build-up in advance of potential tariffs on autos and auto parts proposed by the administration.
Core capital goods, orders minus defense and aircraft, rose 0.6 percent. The May report was revised upward to a gain of 0.7 percent from 0.3 percent originally reported.
“Orders are growing at a healthy clip, rising 8.4 percent on a year-over-year basis. But at the halfway point of 2018, it is clear that 2017’s unprecedented streak of consecutive monthly gains in durable goods activity has faded,” wrote MarketWatch.
Orders for primary metals were down 0.4 percent in June, falling for a second consecutive month. Orders for fabricated metals rose 0.1 percent.
The June advance report on manufacturers’ shipments, inventories and orders follows:
New Orders
New orders for manufactured durable goods in June increased $2.5 billion or 1.0 percent to $251.9 billion, the U.S. Census Bureau announced today. This increase, up following two consecutive monthly decreases, followed a 0.3 percent May decrease. Excluding transportation, new orders increased 0.4 percent. Excluding defense, new orders increased 1.5 percent. Transportation equipment, also up following two consecutive monthly decreases, led the increase by $1.9 billion or 2.2 percent to $87.7 billion.
Shipments
Shipments of manufactured durable goods in June, up 10 of the last 11 months, increased $4.1 billion or 1.7 percent to $251.6 billion. This followed a 0.2 percent May increase. Transportation equipment, up following two consecutive monthly decreases, led the increase by $3.1 billion or 3.8 percent to $85.3 billion.
Unfilled Orders
Unfilled orders for manufactured durable goods in June, up seven of the last eight months, increased $4.4 billion or 0.4 percent to $1,165.1 billion. This followed a 0.5 percent May increase. Transportation equipment, also up seven of the last eight months, led the increase by $2.4 billion or 0.3 percent to $802.3 billion.
Inventories
Inventories of manufactured durable goods in June, down following 17 consecutive monthly increases, decreased $0.4 billion or 0.1 percent to $402.8 billion. This followed a 0.3 percent May increase. Transportation equipment, down following two consecutive monthly increases, drove the decrease by $1.8 billion or 1.4 percent to $126.9 billion.
Capital Goods
Nondefense new orders for capital goods in June increased $1.8 billion or 2.3 percent to $78.6 billion. Shipments increased $1.8 billion or 2.3 percent to $78.4 billion. Unfilled orders increased $0.2 billion or virtually unchanged to $714.2 billion. Inventories decreased $1.7 billion or 1.0 percent to $174.8 billion. Defense new orders for capital goods in June decreased $1.6 billion or 11.6 percent to $12.0 billion. Shipments decreased $0.1 billion or 0.7 percent to $11.5 billion. Unfilled orders increased $0.5 billion or 0.3 percent to $147.7 billion. Inventories increased $0.4 billion or 1.9 percent to $22.9 billion.
Revised May Data
Revised seasonally adjusted May figures for all manufacturing industries were: new orders, $498.4 billion (revised from $498.2 billion); shipments, $496.5 billion (revised from $496.1 billion); unfilled orders, $1,160.7 billion (revised from $1,160.8 billion) and total inventories, $668.4 billion (unchanged).
Sandy Williams
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