New Orders for Durable Goods Gain 1.4% in July, Beating Forecast

Durable Goods Beat Expectations for Second Straight Month

New orders for durable goods rose $6.9 billion or 1.4% to $500.3 billion in July, the U.S. Census Bureau reported. This marks two consecutive months of gains and followed a 0.5% increase in June increase.

Forecasts ranged from a low of 0.2% to a high of 1.6%. The consensus forecast was 1.0%.

Shipments, which had been up for two consecutive months, fell $0.9 billion or 0.2% to $504.0 billion. This followed a 0.1% increase in June increase.

Unfilled orders are up slightly after three straight monthly decreases. They gained $0.6 billion to a virtually unchanged $1,161.5 billion after a 0.6% drop in June. The unfilled orders‐to‐shipments ratio came in at 6.67, up from 6.55 in June.

Inventories, which are now up ten of the last eleven months, rose $1.2 billion or 0.2% to $696.5 billion after a 0.1% gain in June. The inventories‐to‐shipments ratio was 1.38, unchanged from June.

New Orders

New orders for manufactured durable goods are now up for two straight months, gaining $5.0 billion or 2.0% to $250.2 billion. While that’s down slightly from the initially reported 2.1%, it follows a 1.8% gain in June.

Transportation equipment drove the increase in new orders and are up for two consecutive months. They rose $5.7 billion or 7.0% to $86.4 billion. New orders for manufactured nondurable goods rose $2.0 billion, or 0.8% to $250.1 billion.

Shipments

Shipments of manufactured durable goods are down after two consecutive monthly gains, falling $2.9 billion or 1.1% to $253.9 billion. That’s unchanged from the previously published decrease after a 0.9% increase in June.

Transportation equipment are also down after two straight monthly gains, and led the decrease falling $1.8 billion or 2.0% to $86.5 billion.

Shipments of manufactured nondurable goods are now up following two consecutive monthly decreases, rising $2.0 billion or 0.8% to $250.1 billion after a 0.7% decline in June.

Petroleum and coal products, which are also up after two consecutive monthly declines, led the increase rising $1.3 billion or 2.4% to $53.4 billion.

Unfilled Orders

Unfilled orders for manufactured durable goods are up following three straight monthly declines, rising $0.6 billion to a virtually unchanged $1,161.5 billion. While that’s down from the previously estimated 0.1% increase, it follows a 0.6% decrease in June.

Fabricated metal products are now up for two consecutive months and led the increase, rising $0.4 billion or 0.5% to $86.5 billion.

Inventories

Inventories of manufactured durable goods are now up twelve of the last thirteen months, rising $1.4 billion or 0.3% to $427.1 billion. That’s down from the advance 0.4% gain and follows a decline of 0.3% in June.

Transportation equipment are also up twelve of the last thirteen months and led the increase, rising $1.4 billion or 1.0% to $141.1 billion.

Inventories of manufactured nondurable goods are down four consecutive months, falling $0.2 billion or 0.1% to $269.4 billion after being virtually unchanged in June.

Chemical products are down after two consecutive monthly gains and fueled drove the decline, decreasing $0.2 billion or 0.3% to $90.7 billion. By stage of fabrication, July materials and supplies in durable goods and nondurable goods rose 0.1% and 0.7%, respectively.

Work in process rose 0.6% in durable goods and nondurable goods rose 0.6% and 0.2%, respectively. Finished goods for durable goods and nondurable goods gained 0.3% and 0.2%, respectively.