Economy
Orders for Durable Goods Up Slightly in June
Written by David Schollaert
July 27, 2021
Orders for manufactured durable goods rose slightly in June, slowing the upward momentum seen the month prior, reported the U.S. Census Bureau. Orders for cars, appliances and other durable goods rose by 0.8% to a seasonally adjusted $257.6 billion in June, weaker than expected and much less than the 3.2% growth seen the month before. Nonetheless, it recorded gains in 13 of the last 14 months.
Transportation led the increase for the second straight month despite the semiconductor shortage still severely impacting auto production. Transportation rose 2.1% in June, following a 10.0% increase the month prior. Motor vehicle orders were down 0.3% last month, while nondefense aircraft orders remained strong with a 17.0% jump in June.
Computers and electronic products were also up – increasing by 1.0% month on month – despite the chip shortages. Within that category, communication equipment orders rose 6.4%.
Core capital goods orders – orders excluding defense and transportation and considered an indicator for business investment – rose 0.5% last month following an upwardly revised 1.0% gain in May.
The Census Bureau’s June 2021 advance report on durable goods manufacturers’ shipments, inventories and orders follows:
New Orders
New orders for manufactured durable goods in June increased $2.1 billion or 0.8% to $257.6 billion. This increase, up 13 of the last 14 months, followed a 3.2% May increase. Excluding transportation, new orders increased 0.3%. Excluding defense, new orders increased 1.0%. Transportation equipment, up two consecutive months, led the increase by $1.6 billion or 2.1% to $77.5 billion.
Shipments
Shipments of manufactured durable goods in June, up three of the last four months, increased $2.5 billion or 1.0% to $250.7 billion. This followed a 0.4% May increase. Transportation equipment, up following two consecutive monthly decreases, led the increase by $0.8 billion or 1.1% to $71.6 billion.
Unfilled Orders
Unfilled orders for manufactured durable goods in June, up five consecutive months, increased $11.4 billion or 0.9% to $1,223.0 billion. This followed a 1.0% May increase. Transportation equipment, up four of the last five months, led the increase by $5.8 billion or 0.7% to $814.0 billion.
Inventories
Inventories of manufactured durable goods in June, up five consecutive months, increased $3.9 billion or 0.9% to $450.5 billion. This followed a 0.9% May increase. Transportation equipment, also up five consecutive months, led the increase by $1.4 billion or 0.9% to $151.6 billion.
Capital Goods
Nondefense new orders for capital goods in June increased $2.6 billion or 3.1% to $88.9 billion. Shipments increased $1.5 billion or 1.9% to $79.2 billion. Unfilled orders increased $9.7 billion or 1.3% to $742.2 billion. Inventories increased $1.7 billion or 0.8% to $199.7 billion.
Defense new orders for capital goods in June decreased $0.2 billion or 1.5% to $10.3 billion. Shipments decreased less than $0.1 billion or 0.1% to $11.8 billion. Unfilled orders decreased $1.5 billion or 0.8% to $189.0 billion. Inventories decreased $0.2 billion or 1.0% to $20.6 billion.
Revised May Data
Revised seasonally adjusted May figures for all manufacturing industries were: new orders, $498.6 billion (revised from $495.5 billion); shipments, $491.3 billion (revised from $490.4 billion); unfilled orders, $1,211.6 billion (revised from $1,209.5 billion) and total inventories, $733.2 billion (revised from $731.6 billion).
David Schollaert
Read more from David SchollaertLatest in Economy
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.
Chicago Business Barometer slips in October
The Chicago Business Barometer fell to a five-month low in October and continues to indicate deteriorating business conditions, according to Market News International (MNI) and the Institute for Supply Management (ISM).
Final Thoughts
We all know the American news cycle moves pretty fast. Viral today, cached tomorrow. So it is with the US presidential election on Tuesday, Nov. 5. People have election fatigue. They've moved on to other things like planning holiday parties, debating Super Bowl hopefuls, or even starting to look forward to our Tampa Steel Conference in February.
CRU: What will the US elections mean for economic policy?
In this Insight piece, CRU economists explore the possible economic effects of Trump's and Harris' agendas.
Architecture Billings Index remains dismal in September
Architecture firms continued to experience soft business conditions through September, according to the latest Architecture Billings Index (ABI) release by the American Institute of Architects (AIA) and Deltek.