Economy

Orders for Durable Goods Up Slightly in June

Written by David Schollaert


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

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