Durable Goods Orders Surge in July, Beating Forecast for Second Straight Month

Manufacturing Shows Signs of Rebound After Slowdown in Early 2019

The U.S. Census Bureau reported new orders for manufactured durable goods rose $5.0 billion or 2.1% to $250.4 billion in July, beating forecasts. Durable goods orders are now up for two consecutive months after a 1.8% gain in June.

More on New Orders

The consensus forecast was looking for a solid gain of 1.2% for the month.

Excluding transportation, new orders decreased 0.4%. Excluding defense, new orders rose 1.4%. Transportation equipment, which have also been up for two consecutive months, fueled the gain rising $5.7 billion or 7.0% to $86.3 billion.

Shipments

Shipments of manufactured durable goods are down after two straight monthly gains, falling $2.9 billion or 1.1% to $254.0 billion. That comes after a 1.0% increase in June.

Transportation equipment, which is also down after two consecutive monthly gains, led the decrease falling $1.8 billion or 2.1% to $86.4 billion.

Unfilled Orders

Unfilled orders are up after three straightly months of declines, rising $0.7 billion or 0.1% to $1,161.6 billion. This follows a 0.6% decline in June. Leading the decrease was fabricated metal products after being up for two straight months, falling $0.4 billion or 0.4% to $86.5 billion.

Inventories

Inventories have been up twelve of the last thirteen months, and gained $1.5 billion, or 0.4% to $427.3 billion in July.

That follows a 0.3% increase in June. Transportation equipment, which have also been up twelve of the last thirteen months, led the gain, rising $1.4 billion or 1.0% to $141.1 billion.

Capital Goods

Nondefense new orders for capital goods gained $3.6 billion, or 5.0% to $75.8 billion in July. Shipments fell $2.3 billion, or 3.0% to $74.4 billion, while unfilled orders rose $1.4 billion or 0.2% to $693.6 billion.

Inventories gained $1.4 billion, or 0.7% to $190.5 billion. Defense new orders for capital goods soared $1.5 billion, or 14.4% to $11.8 billion. Shipments fell $0.3 billion or 2.3% to $12.6 billion, while unfilled orders declined $0.8 billion or 0.5% to $155.9 billion. Inventories gained $0.3 billion, or 1.3% to $24.0 billion.

June Revisions

New orders were unchanged at $493.8 billion for the month of June, while shipments were revised to $505.4 billion from $506.2 billion. Unfilled orders were revised to $1,161.0 billion from $1,160.2 billion and total inventories were revised to $695.4 billion from $695.6 billion.