Economy
Durable Goods Orders Have Record Gain of 22.6%
Written by Sandy Williams
August 26, 2014
Durable goods orders increased 22.6 percent in July, or $55.3 billion to $300.2 billion, according to data released by the U.S. Census Bureau. The increase was the highest level seen since the series was first published in 1992. Excluding defense, new orders increased 24.9 percent. Transportation equipment drove the increase with a gain of 74.2 percent, especially for commercial aircraft. Excluding transportation, orders decreased by 0.8 percent.
The increase was triple the 7.5 percent forecast consensus of economists surveyed by The Wall Street Journal.
The Census Bureau report on durable goods follows:
New Orders. New orders for manufactured durable goods in July increased $55.3 billion or 22.6 percent to $300.1 billion, the U.S. Census Bureau announced today. This increase, up five of the last six months, was at the highest level since the series was first published on a NAICS basis in 1992, and followed a 2.7 percent June increase. Excluding transportation, new orders decreased 0.8 percent. Excluding defense, new orders increased 24.9 percent. Transportation equipment, also up five of the last six months, drove the increase, $56.6 billion or 74.2 percent to $133.0 billion.
Shipments. Shipments of manufactured durable goods in July, up five of the last six months, increased $8.0 billion or 3.3 percent to $248.9 billion. This was at the highest level since the series was first published on a NAICS basis and followed a 1.2 percent June increase. Transportation equipment, up two consecutive months, led the increase, $5.6 billion or 7.9 percent to $76.3 billion.
Unfilled Orders. Unfilled orders for manufactured durable goods in July, up fifteen of the last sixteen months, increased $59.2 billion or 5.4 percent to $1,158.5 billion. This was at the highest level since the series was first published on a NAICS basis and followed a 1.0 percent June increase. Transportation equipment, up ten of the last eleven months, led the increase, $56.7 billion or 8.3 percent to $738.4 billion.
Inventories. Inventories of manufactured durable goods in July, up fifteen of the last sixteen months, increased $2.1 billion or 0.5 percent to $401.9 billion. This was at the highest level since the series was first published on a NAICS basis and followed a 0.5 percent June increase. Transportation equipment, also up fifteen of the last sixteen months, led the increase, $0.7 billion or 0.5 percent to $129.6 billion.
Capital Goods. Nondefense new orders for capital goods in July increased $51.5 billion or 60.8 percent to $136.3 billion. Shipments increased $1.1 billion or 1.4 percent to $79.1 billion. Unfilled orders increased $57.2 billion or 8.6 percent to $725.2 billion. Inventories increased $2.3 billion or 1.2 percent to $184.2 billion. Defense new orders for capital goods in July decreased $1.5 billion or 15.3 percent to $8.6 billion. Shipments increased $0.2 billion or 1.7 percent to $9.6 billion. Unfilled orders decreased $1.0 billion or 0.6 percent to $159.5 billion. Inventories decreased $0.2 billion or 1.0 percent to $23.8 billion.
Revised June Data. Revised seasonally adjusted June figures for all manufacturing industries were: new orders, $505.6 billion (revised from $503.2 billion); shipments, $501.7 billion (revised from $499.8 billion); unfilled orders, $1,099.3 billion (revised from $1,098.5 billion); and total inventories, $654.1 billion (revised from $653.8 billion).
Sandy Williams
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