Economy

Durable Goods Orders Decline 1.8% in May

June 23, 2015

New orders for manufactured durable goods orders fell 1.8 percent or $4.1 billion or 1.8 percent to $228.9 billion in May, according the U.S. Census Bureau. Orders have decreased in three of the last four months, including a 1.5 percent decrease in April, and continue to be below the 2010-to-date trendline since late in 2014. The decline was steeper than expected by economists who were expecting a one percent decline. Orders are down by 2.2 percent in the first five months of the year compared to the same period in 2014.

Transportation equipment drove the decrease in new orders for May, falling 6.4 percent to $71.7 billion. Included in transportation equipment is non-defense aircraft and parts orders which fell 35.3 percent since April.

The Census Bureau report issued on Tuesday, June 23 read as follows:

New Orders for manufactured durable goods in May decreased $4.1 billion or 1.8 percent to $228.9 billion, the U.S. Census Bureau announced today. This decrease, down three of the last four months, followed a 1.5 percent April decrease. Excluding transportation, new orders increased 0.5 percent. Excluding defense, new orders decreased 2.1 percent. Transportation equipment, also down three of the last four months, drove the decrease, $4.9 billion or 6.4 percent to $71.7 billion.

Shipments of manufactured durable goods in May, down four of the last five months, decreased $0.2 billion or 0.1 percent to $239.9 billion. This followed a 0.2 percent April decrease. Transportation equipment, also down four of the last five months, drove the decrease, $0.7 billion or 0.9 percent to $76.7 billion.

Unfilled orders for manufactured durable goods in May, down five of the last six months, decreased $5.7 billion or 0.5 percent to $1,195.5 billion. This followed a 0.2 percent April decrease. Transportation equipment, also down five of the last six months, led the decrease, $5.1 billion or 0.6 percent to $798.8 billion.

Inventories of manufactured durable goods in May, down following twenty-three consecutive monthly increases, decreased $0.8 billion or 0.2 percent to $400.6 billion. This followed a 0.2 percent April increase. Transportation equipment, down two of the last three months, led the decrease, $0.3 billion or 0.2 percent to $129.9 billion. Capital Goods Non-defense new orders for capital goods in May decreased $5.2 billion or 6.6 percent to $74.3 billion. Shipments decreased $0.5 billion or 0.6 percent to $79.3 billion. Unfilled orders decreased $5.0 billion or 0.7 percent to $757.1 billion. Inventories decreased $1.1 billion or 0.6 percent to $176.2 billion.

Defense new orders for Capital Goods in May increased $0.7 billion or 8.2 percent to $8.8 billion. Shipments increased less than $0.1 billion or 0.3 percent to $9.5 billion. Unfilled orders decreased $0.7 billion or 0.5 percent to $150.6 billion. Inventories decreased less than $0.1 billion or virtually unchanged to $21.6 billion. Revised April Data Revised seasonally adjusted April figures for all manufacturing industries were: new orders, $474.5 billion (revised from $476.7 billion); shipments, $481.5 billion (revised from $482.4 billion); unfilled orders, $1,201.2 billion (revised from $1,202.4 billion); and total inventories, $649.0 billion (virtually unchanged).