–Ex Defense -0.7%; Civ Aircrft Ordrs +14.3% as Boeing Continues Rebound
By Joseph Plocek
WASHINGTON (MNI) – The June durable goods data showed aircraft and
defense ordering continues to support manufacturing as an irregular
up-trend continues in orders. Orders are up 9.1% over the year and are
well outpacing inflation.
June durables orders printed +1.6%, but the number was -1.1%
excluding transportation and -0.7% ex defense. Ex-transportation orders
now are down in three of the last four months.
Boeing Corp. reported 24 new orders for civilian aircraft after
just eight in May. Unsurprisingly, nondefense aircraft orders printed
+14.3%.
Motor vehicles posted -0.6%, but overall transportation was +8.0%
in its best showing since November 2011 and a fourth gain in five
months. Overall defense capital goods orders were up 62%.
In other components, primary metals at +0.9% were a rebound, and
machinery at -1.1% a reversal. Computers posted -4.9% and electronics
-0.7%.(In an interesting discrepancy, machinery shipments printed +3.1%
in the largest gain in the shipments data.)
Nondefense capital goods shipments printed +0.6% in a second
gain. This suggests Q2 capital spending should eke out a gain.
Total shipments were +0.1% and inventories +0.3%. Inventories
should have continued adding to Q2 growth. Shipments are now up in six
of the last seven months.
Overall this report was not a ball of fire but the headline print
was better than expected and suggests additional modest growth in
manufacturing.
**MNI Washington Bureau: (202)371-2121**
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