Durable Goods Orders Rise
Durable goods orders rose for the third time in the last four months:
New Orders
New orders for manufactured durable goods in May increased $2.8 billion or 1.8 percent to $163.9 billion, the U.S. Census Bureau announced today. This was the third increase in the last four months and followed a 1.8 percent April increase. Excluding transportation, new orders increased 1.1 percent. Excluding defense, new orders also increased 1.4 percent.
Shipments
Shipments of manufactured durable goods in May, down ten consecutive months, decreased $3.6 billion or 2.1 percent to $169.9 billion. This was the longest streak of consecutive monthly decreases since the series was first published on a NAICS basis in 1992 and followed a 0.5 percent April decrease.
Unfilled Orders
Unfilled orders for manufactured durable goods in May, down eight consecutive months, decreased $2.0 billion or 0.3 percent to $747.5 billion. This followed a 1.1 percent April decrease.
Inventories
Inventories of manufactured durable goods in May, down five consecutive months, decreased $2.5 billion or 0.8 percent to $323.3 billion. This followed a 1.1 percent April decrease.
Capital Goods Industries
Nondefense
Nondefense new orders for capital goods in May increased $4.9 billion or 10.0 percent to $53.8 billion.
Defense
Defense new orders for capital goods in May increased $0.8 billion or 7.4 percent to $12.0 billion.
The capital goods increase of 10% is particularly impressive and is a leading indicator for business spending. With consumer spending likely to lag in this recovery as individuals continue to increase savings, business spending will have to pick up the slack.
- June 24th
[...] resolving the range were mixed enough to instead reinforce investors lack of conviction. Durable goods orders were higher for the third time in four months and the capital goods orders portion of the report [...]
[...] on an aggregate basis. Business investment also seems to be returning to a more normal pattern. Durable goods orders have risen 3 of the last 4 months and the last report showed a 10% rise in non defense capital [...]