Economy
Durable Goods Orders Rise After Revised Dip in May
Written by Sandy Williams
July 27, 2014
Durable goods orders increased 0.7 percent after dropping 1.0 percent in May, according to data released by the US. Census Bureau. New orders, excluding transportation, increased 0.8 percent. Excluding defense, new orders increased 0.7 percent. Machinery led the advance in June with a 2.4 percent increase in new orders.
“Durable goods orders climbed 0.7% in June, but the gain falters to just 0.1% when volatile civilian aircraft and defense orders are removed,” wrote analysts at IHS. “The Census Bureau data on durable goods say manufacturing is mediocre, while the industrial production and manufacturing surveys say orders and production are great. The latter two fit the story more consistently. The manufacturing sector is benefitting from a pickup in inventory building after a period of inventory restraint, and that is producing a boomlet in manufacturing for the near term. The business surveys, industrial production, inventory swings, and manufacturing employment data all tell a story of above-normal growth, but the durable goods report says ‘nay.’ We believe the more consistent story of the majority of reports.”
The Census Bureau advance report on durable goods for June 2014 follows:
New Orders
New orders for manufactured durable goods in June increased $1.8 billion or 0.7 percent to $239.9 billion, the U.S. Census Bureau announced today. This increase, up four of the last five months, followed a 1.0 percent May decrease. Excluding transportation, new orders increased 0.8 percent. Excluding defense, new orders increased 0.7 percent. Machinery, up following two consecutive monthly decreases, led the increase, $0.9 billion or 2.4 percent to $37.3 billion.
Shipments
Shipments of manufactured durable goods in June, up four of the last five months, increased $0.3 billion or 0.1 percent to $238.2 billion. This followed a 0.1 percent May decrease. Transportation equipment, up following two consecutive monthly decreases, drove the increase, $0.5 billion or 0.7 percent to $70.2 billion.
Unfilled Orders
Unfilled orders for manufactured durable goods in June, up fourteen of the last fifteen months, increased $8.7 billion or 0.8 percent to $1,096.8 billion. This was at the highest level since the series was first published on a NAICS basis in 1992 and followed a 0.7 percent May increase. Transportation equipment, up nine of the last ten months, led the increase, $4.9 billion or 0.7 percent to $681.0 billion.
Inventories
Inventories of manufactured durable goods in June, up fourteen of the last fifteen months, increased $1.6 billion or 0.4 percent to $399.7 billion. This was at the highest level since the series was first published on a NAICS basis and followed a 1.0 percent May increase. Transportation equipment, also up fourteen of the last fifteen months, led the increase, $0.9 billion or 0.7 percent to $128.8 billion.
Capital Goods
Nondefense new orders for capital goods in June increased $1.5 billion or 1.8 percent to $82.3 billion. Shipments increased $0.9 billion or 1.2 percent to $76.6 billion. Unfilled orders increased $5.6 billion or 0.8 percent to $667.2 billion. Inventories increased $0.1 billion or 0.1 percent to $181.8 billion. Defense new orders for capital goods in June increased $0.2 billion or 2.5 percent to $9.7 billion. Shipments decreased $0.1 billion or 0.6 percent to $9.4 billion. Unfilled orders increased $0.3 billion or 0.2 percent to $159.8 billion. Inventories increased $0.5 billion or 2.1 percent to $24.1 billion.
Revised May Data
Revised seasonally adjusted May figures for all manufacturing industries were: new orders, $497.0 billion (revised from $497.7 billion); shipments, $496.7 billion (revised from $498.3 billion); unfilled orders, $1,088.1 billion (revised from $1,087.4 billion); and total inventories, $652.0 billion (revised from $651.5 billion).
Sandy Williams
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