Economy
Durable Goods Orders Slip 1.3% in April
Written by Sandy Williams
May 27, 2021
Durable goods orders took a surprising tumble in April, dipping 1.3% instead of rising 7-9% as predicted by economists.
The volatile transportation category was responsible for most of the decline, falling 6.7%. Automotive orders fell 2.6%, sliding for a second time in the past three months as production slowed due to supply issues with semiconductor chips. Commercial aircraft orders leapt 17.4%, after declining 26.8% last month, indicating that the industry is beginning to recover from lost orders during the pandemic. Minus transportation, durable goods orders gained 1.0% in April.
Core capital goods orders–orders excluding defense and transportation and considered an indicator for business investment–increased 2.3% following a 1.6% gain in March.
In a separate government report today, real gross domestic product (GDP) increased 6.4% in the first quarter of 2021, good news for a recovering economy.
Following is the April advance report from the U.S. Census Bureau on durable goods manufacturers’ shipments, inventories and orders:
New Orders
New orders for manufactured durable goods in April decreased $3.2 billion or 1.3% to $246.2 billion. This decrease, down following 11 consecutive monthly increases, followed a 1.3% March increase. Excluding transportation, new orders increased 1.0%. Excluding defense, new orders were virtually unchanged. Transportation equipment, down two consecutive months, drove the decrease by $4.9 billion or 6.7% to $68.9 billion.
Shipments
Shipments of manufactured durable goods in April, up 11 of the last 12 months, increased $1.4 billion or 0.6% to $248.7 billion. This followed a 2.7% March increase. Primary metals, also up 11 of the last 12 months, led the increase by $0.6 billion or 2.7% to $21.6 billion.
Unfilled Orders
Unfilled orders for manufactured durable goods in April, up three consecutive months, increased $1.9 billion or 0.2% to $1,197.0 billion. This followed a 0.5% March increase. Fabricated metal products, up 11 consecutive months, drove the increase by $3.1 billion or 3.4% to $95.9 billion.
Inventories
Inventories of manufactured durable goods in April, up three consecutive months, increased $2.2 billion or 0.5% to $441.6 billion. This followed a 1.0% March increase. Transportation equipment, also up three consecutive months, led the increase by $0.9 billion or 0.6% to $149.4 billion.
Capital Goods
Nondefense new orders for capital goods in April increased $2.7 billion or 3.5% to $80.1 billion. Shipments increased $3.1 billion or 4.1% to $78.9 billion. Unfilled orders increased $1.2 billion or 0.2% to $721.9 billion. Inventories decreased $0.3 billion or 0.2% to $196.4 billion.
Defense new orders for capital goods in April decreased $3.2 billion or 25.8% to $9.1 billion. Shipments increased $0.6 billion or 4.8% to $12.2 billion. Unfilled orders decreased $3.1 billion or 1.6% to $191.9 billion. Inventories increased $0.1 billion or 0.7% to $20.9 billion.
Revised and Recently Benchmarked March Data
Revised seasonally adjusted March figures for all manufacturing industries were: new orders, $487.8 billion (revised from $486.6 billion); shipments, $485.8 billion (revised from $485.4 billion); unfilled orders, $1,195.1 billion (revised from $1,194.2 billion) and total inventories, $721.0 billion (revised from $721.1 billion).
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
ISM: US manufacturing poised for growth in 2025
“Manufacturers are optimistic,” said Timothy R. Fiore, chair of ISM’s Manufacturing Business Survey Committee.
New York state manufacturing activity stable in December
Following a substantial recovery in November, business activity in New York state’s manufacturing sector held steady in December, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.
Ternium chief say Mexico tariffs ‘irrational’
Vedoya said the proposed tariffs are "an irrational measure that would harm both their own industry and ours."
Slowing data center, warehouse planning drives decline in Dodge index
The Dodge Momentum Index (DMI) slid further in November as planning for data centers and warehouses continued to decline.
Beige Book shows some positive economic activity
Still, many businesses noted increased sensitivity to prices and quality among customers.