Economy
June Durable Goods Surprise to the Upside Again
Written by David Schollaert
July 29, 2022
New orders for US manufactured durable goods rose unexpectedly in June after a surprising increase the month prior. June’s gain was boosted by a surge in defense aircraft as well as a sustained demand for equipment.
Last month’s bookings for durable goods were up 1.9% following a 0.8% gain a month earlier, according to the Commerce Department. Figures are not adjusted for inflation.
Orders for fighter jets and other military planes jumped 81%, countering a 2.1% decline in commercial airplanes.
The value of core capital goods orders – a proxy for investment in equipment that excludes aircraft and non-defense capital goods – expanded by 0.5% for a second straight month in June. Those orders were up 10.5% year-on-year (YoY) last month.
Core capital goods shipments, a figure that is used to help calculate equipment investment in the government’s gross domestic product report, rose 0.7% in June following a 1.0% gain the prior month.
The broad-based gain in durable goods included strong booking for motor vehicles, computers and electronic products, and fabricated metals. But orders for primary metals, machinery, and communications equipment fell.
The report also indicated that unfilled orders for all durable goods rose 0.7%. Inventories increased 0.4%.
Click here more detail on the June advance report from the US Census Bureau on durable goods manufacturers’ shipments, inventories, and orders. See also Figure 1 below.
Revised and Recently Benchmarked May Data
Revised seasonally adjusted May figures for all manufacturing industries were: new orders, $544.4 billion (revised from $543.4 billion); shipments, $545.7 billion (revised from $544.4 billion); unfilled orders, $1,109.7 billion (revised from $1,110.0 billion) and total inventories, $798.3 billion (revised from $797.9 billion).
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
Read more from David SchollaertLatest in Economy
Architecture billings flat in October after months of contraction
Architecture firms reported stable billings in October, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek. This follows 20 months of contracting business conditions.
Trump taps Lutnick to be Commerce Secretary
President-elect Donald Trump has named Wall Street veteran Howard Lutnick as the new US Secretary of Commerce.
New York state manufacturing activity ramps up to multi-year high
New York state’s manufacturing sector saw substantial recovery in November, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.
CRU: Dollar and bond yields rise, metal prices fall as Trump wins election
Donald Trump has won the US presidential election. The Republican party has re-taken control of the Senate. Votes are still being counted in many tight congressional races. But based on results so far, the Republicans seem likely to maintain control of the House of Representatives. If confirmed, this will give Trump considerable scope to pass legislation pursuing his agenda. What this means for US policy is not immediately obvious. Trump will not be inaugurated until Jan. 20. In the coming weeks and months, he will begin to assemble his cabinet, which may give a clearer signal on his policy priorities and approaches. Based on statements he made during the presidential campaign, we have set out the likely direction of his economic policy here and green policy here.
ISM: Manufacturing index fell in Oct to lowest point of ’24
Domestic manufacturing contracted for the seventh straight month in October, according to the latest report from the Institute for Supply Management (ISM). This marks the 23rd time in the last 24 months that it has been in contraction.