–Ex Defense -1.1%; Aircraft, Communications, Electrical Orders Dip
By Joseph Plocek
WASHINGTON (MNI) – May durable goods orders data were pretty
much as expected, printing -1.1% overall, but +0.9% excluding the
volatile transportation category.
Ex-defense orders were also weak at -1.1%. This was the first drop
in six months in overall orders and the first drop in nine months in
ex-defense.
Transportation equipment orders were down 6.9% as civilian aircraft
printed -29.6% and defense aircraft -7.1%. Boeing Corp. reported only
five new orders in May, down from its usual 30-40 range, and this was
the likely culprit.
Most other orders were better: autos posted +0.7%, primary metals
+0.8%, machinery +5.6%, and computers +0.1%.
Exceptions were electrical equipment at -0.1% and communications
equipment at -9.4%.
Overall shipments fell 0.4% and inventories advanced 0.8%.
Nondefense capital goods shipments were up 0.3% and this was enough of a
gain to offset a small retreat in April. The April-May average is above
Q1, suggesting businesses invested.
These data are all pretty much as expected.
**Market News International Washington Bureau: (202)371-2121**
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