The U.S. Census Bureau said Friday durable goods orders in July decreased $16.7 billion or 6.8% to $229.2 billion, more than the consensus 5.8% forecast. A decline in aircraft orders drove the overall headline in the report, which fell 82% in July juxtaposed to the giant 227% jump in June.
Still, the report is a net positive for gross domestic product (GDP) as it shows a sharp 1.0 increase in shipments of core capital goods.
They were revised 0.2% higher for June to 0.6%.
Overall, shipments of manufactured durable goods in July, which have been up three consecutive months, increased $1.0 billion or 0.4% to $237.4 billion. Transportation equipment, up two of the last three months, fueled the gains, $0.4 billion or 0.5% to $79.2 billion.
Excluding transportation, new orders increased 0.5%. Excluding defense, new orders decreased 7.8%. Transportation equipment, also down three of the last four months, drove the decrease, $17.4 billion or 19.0% to $74.3 billion.
Unfilled orders for manufactured durable goods in July, which have been down two of the last three months, decreased $3.8 billion or 0.3% to $1,131.8 billion. In June, it increased by 1.3%. Transportation equipment, which has also been down two of the last three months, fueled the decline, $4.8 billion or 0.6% to $772.2 billion.