Economy
Durable Goods Orders Increase in July
Written by Sandy Williams
August 26, 2019
Orders for durable goods increased for a second month, gaining 2.1 percent in July, according the latest data from the Commerce Department. Transportation again led the gain with a surge of 47.8 percent for aircraft and parts. Excluding the volatile transportation category, durable goods orders were down 0.4 percent.
Core capital goods, non-defense minus aircraft and a measure of future investment, rose 0.4 percent. On a year-over-year basis, core capital goods saw the first decline since 2016, falling 0.3 percent.
Shipments of durable goods dipped 1.1 percent in July after gaining 1.0 percent in June.
“The U.S. manufacturing sector is in a technical recession, struggling with trade tension, global weakness and the strong dollar,” wrote MarketWatch. “Economists think capital goods orders are likely to be weak in the third quarter.”
The July advance report on manufacturers’ shipments, inventories and orders follows:
New Orders
New orders for manufactured durable goods in July increased $5.0 billion or 2.1 percent to $250.4 billion, the U.S. Census Bureau said. This increase, up two consecutive months, followed a 1.8 percent June increase. Excluding transportation, new orders decreased 0.4 percent. Excluding defense, new orders increased 1.4 percent. Transportation equipment, also up two consecutive months, drove the increase by $5.7 billion or 7.0 percent to $86.3 billion.
Shipments
Shipments of manufactured durable goods in July, down following two consecutive monthly increases, decreased $2.9 billion or 1.1 percent to $254.0 billion. This followed a 1.0 percent June increase. Transportation equipment, also down following two consecutive monthly increases, led the decrease by $1.8 billion or 2.1 percent to $86.4 billion.
Unfilled Orders
Unfilled orders for manufactured durable goods in July, up following three consecutive monthly decreases, increased $0.7 billion or 0.1 percent to $1,161.6 billion. This followed a 0.6 percent June decrease. Fabricated metal products, up two consecutive months, led the increase by $0.4 billion or 0.4 percent to $86.5 billion.
Inventories
Inventories of manufactured durable goods in July, up 12 of the last 13 months, increased $1.5 billion or 0.4 percent to $427.3 billion. This followed a 0.3 percent June increase. Transportation equipment, also up 12 of the last 13 months, led the increase by $1.4 billion or 1.0 percent to $141.1 billion.
Capital Goods
Nondefense new orders for capital goods in July increased $3.6 billion or 5.0 percent to $75.8 billion. Shipments decreased $2.3 billion or 3.0 percent to $74.4 billion. Unfilled orders increased $1.4 billion or 0.2 percent to $693.6 billion. Inventories increased $1.4 billion or 0.7 percent to $190.5 billion. Defense new orders for capital goods in July increased $1.5 billion or 14.4 percent to $11.8 billion. Shipments decreased $0.3 billion or 2.3 percent to $12.6 billion. Unfilled orders decreased $0.8 billion or 0.5 percent to $155.9 billion. Inventories increased $0.3 billion or 1.3 percent to $24.0 billion.
Revised June Data
Revised seasonally adjusted June figures for all manufacturing industries were: new orders, $493.8 billion (unchanged); shipments, $505.4 billion (revised from $506.2 billion); unfilled orders, $1,161.0 billion (revised from $1,160.2 billion) and total inventories, $695.4 billion (revised from $695.6 billion).
Sandy Williams
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