Durable goods orders for May
- Prior month +1.1% revised to 1.2%
- Durable goods orders 1.7% versus expectations of -1.0%. Prior month +1.1% revised to 1.2%. This marks an increase for three consecutive months, following a 1.2 percent increase in April.
- Transportation equipment orders led the increase, going up $3.9 billion or 3.9 percent to $102.6 billion.
- Ex Transportation 0.6% versus expectations of -0.1%. Prior month -0.2% revised to -0.6%
- Ex Defense 3.0% versus the prior month of -0.6% revised to -0.5%.
- Non-defense Cap Ex-air 0.7% vs expectations of 0.0%. Prior month +1.4% revised to 0.6%
Further details of shipments, unfilled orders, and inventories show:
Shipments:
- Shipments of manufactured durable goods in May increased $4.8 billion or 1.7 percent to $282.7 billion.
- This marks an increase in two of the last three months, following a 0.6 percent decrease in April.
- Transportation equipment shipments led the increase, going up $4.0 billion or 4.6 percent to $91.8 billion.
Unfilled Orders:
- Unfilled orders for manufactured durable goods in May increased $10.6 billion or 0.8 percent to $1,302.0 billion.
- This marked an increase for five of the last six months, following a 0.8 percent increase in April.
- Transportation equipment orders led this increase, going up $10.8 billion or 1.4 percent to $803.9 billion.
Inventories:
- Inventories of manufactured durable goods in May increased $1.2 billion or 0.2 percent to $522.9 billion.
- This marks an increase for five of the last six months, following a 1.0 percent increase in April.
- Machinery led this increase, with a rise of $0.5 billion or 0.5 percent to $94.4 billion.
A look at Capital goods shows:
Capital Goods:
- Nondefense new orders for capital goods in May increased $5.7 billion or 6.7 percent to $91.0 billion.
- Shipments increased $2.7 billion or 3.4 percent to $82.9 billion.
- Unfilled orders increased $8.1 billion or 1.1 percent to $748.7 billion.
- Inventories increased $0.1 billion or 0.1 percent to $225.5 billion.
- Defense new orders for capital goods in May decreased $2.7 billion or 14.7 percent to $15.9 billion.
- Shipments decreased $0.2 billion or 1.2 percent to $13.2 billion.
- Unfilled orders increased $2.7 billion or 1.3 percent to $213.6 billion.
- Inventories increased $0.1 billion or 0.2 percent to $24.2 billion.
Overall better than expected orders data. Shipments increased as well, as did unfilled orders. Transportation led the gains. With air traffic increasing post-pandemic, the suppressed orders from those years are being backfilled.
The durable goods report will be revised when factory orders are released in a week or so.
