Durable Orders Rose 1.8% in May

New orders for long-lasting U.S. manufactured goods increased $2.8 billion or 1.8 percent to $163.9 billion in May, according to the U.S. Census Bureau. 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. Machinery, up three of the last four months, had the largest increase, $1.6 billion or 7.7 percent to $22.5 billion.

“The May durable goods report adds a persuasive component to a growing body of evidence that U.S. economic activity is beginning to stabilize after a deep contraction,” Cliff Waldman, Economist for the Manufacturers Alliance/MAPI said. “Stripping out either transportation or defense, two volatile categories of demand, new orders were up over 1 percent. And ‘manufacturing with unfilled orders’ had a sharp increase for the second consecutive month, indicating that demand is beginning to make a positive contribution to future production.

“The industrial composition of orders was mixed in May, although soaring demand for machinery is a positive sign for a broad U.S. economic recovery,” he added. “Further, new orders for non-defense capital goods excluding aircraft, a proxy for business equipment spending, rose by nearly 5 percent after a deep fall of nearly 3 percent the prior month, an indication that business confidence in future economic activity is starting to improve. Nonetheless, the still sharp declines in year-over-year activity across all categories of demand is a reminder that the U.S. factory sector still has a long way to go and is facing the headwind of one of the deepest global contractions in a generation.”

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. Transportation equipment, down two consecutive months, had the largest decrease, $2.7 billion or 6.0 percent to $42.2 billion.

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. Machinery, down eight consecutive months, had the largest decrease, $0.8 billion or 0.9 percent to $87.7
billion.

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. Primary metals, down eight consecutive months, had the largest decrease, $0.9 billion or 3.0 percent to $27.1 billion.

Capital Goods
Nondefense new orders for capital goods in May increased $4.9 billion or 10.0 percent to $53.8 billion. Shipments decreased $0.2 billion or 0.3 percent to $56.3 billion. Unfilled orders decreased $2.5 billion or 0.6 percent to $429.7 billion. Inventories decreased $0.5 billion or 0.3 percent to $142.1 billion. Defense new orders for capital goods in May increased $0.8 billion or 7.4 percent to $12.0 billion. Shipments increased $0.1 billion or 1.0 percent to $10.4 billion. Unfilled orders increased $1.7 billion or 1.2 percent to $144.4 billion. Inventories decreased $0.1 billion or 0.4 percent to $20.2 billion.

Learn more.

<< Back to news articles