US Durable Goods Orders Fall More than Expected
New orders for US manufactured durable goods fell 2.1 percent from a month earlier in April 2019, reversing a downwardly revised 1.7 percent growth in March and slightly worse than market expectations of a 2 percent drop. Transportation equipment, down two of the last three months, drove the decrease.
5/24/2019 12:47:02 PM
Demand for transport equipment slumped 5.9 percent in April (vs 5.9 percent in March), led by civilian aircraft (-25.1 percent vs 7.8 percent), motor vehicles and parts (-3.4 percent vs 0.4 percent), and defense aircraft and parts (-2.4 percent vs 19 percent). Orders also fell for primary metals (-0.8 percent vs -1.9 percent) and computers and electronic products (-0.4 percent vs 2.1 percent). Meanwhile, increases were recorded in demand for electrical equipment, appliances, and components (0.9 percent vs 0.5 percent), fabricated metal products (0.4 percent vs -1.6 percent), machinery (0.1 percent vs -2 percent).
Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, dropped 0.9 percent in April, after increasing 0.3 percent in March.
Excluding transportation, new orders were unchanged (vs -0.5 percent in March). Excluding defense, new orders plunged 2.5 percent (vs 0.1 percent in March).
Shipments of manufactured durable goods in April, down three of the last four months, decreased $4.0 billion or 1.6 percent to $253.3 billion. This followed a 0.5 percent March decrease. Transportation equipment, down four consecutive months, led the decrease, $3.7 billion or 4.1 percent to $85.8 billion.
Unfilled orders for manufactured durable goods in April, down two of the last three months, decreased $0.7 billion or 0.1 percent to $1,179.1 billion. This followed a 0.1 percent March increase. Transportation
equipment, also down two of the last three months, led the decrease, $0.4 billion or 0.1 percent to $810.6 billion.
Inventories of manufactured durable goods in April, up nine of the last ten months, increased $1.8 billion or 0.4 percent to $422.6 billion. This followed a 0.3 percent March increase. Transportation equipment, also up nine of the last ten months, led the increase, $1.5 billion or 1.1 percent to $136.1 billion.
Nondefense new orders for capital goods in April decreased $3.9 billion or 5.0 percent to $74.0 billion. Shipments decreased $2.4 billion or 3.0 percent to $75.9 billion. Unfilled orders decreased $2.0 billion or 0.3 percent to $705.3 billion. Inventories increased $0.9 billion or 0.5 percent to $185.9 billion. Defense new orders for capital goods in April increased $0.7 billion or 4.8 percent to $14.7 billion. Shipments increased $0.3 billion or 2.6 percent to $12.8 billion. Unfilled orders increased $1.9 billion or 1.2 percent to $159.2 billion. Inventories increased $0.1 billion or 0.6 percent to $23.4 billion.