New orders for manufactured durable goods in July increased $55.3 billion or 22.6 percent to $300.1 billion, the U.S. Census Bureau announced today. This increase, up five of the last six months, was at the highest level since the series was first published on a NAICS basis in 1992, and followed a 2.7 percent June increase. Excluding transportation, new orders decreased 0.8 percent. Excluding defense, new orders increased 24.9 percent. Transportation equipment, also up five of the last six months, drove the increase, 74.2 percent to $133.0 billion.
The 22.6 percent increase was due entirely to a 318 percent surge in new orders for nondefense aircraft and parts, according to Cliff Waldman, economist for the MAPI Foundation, the research affiliate of the Manufacturers Alliance for Productivity and Innovation.
“New orders excluding transportation fell by 0.8 percent, following a strong 3 percent increase in June," Waldman said. "Key supply chain industries experienced weak demand; for example, primary metals and fabricated metals demand had modest declines of 0.3 percent and 0.4 percent, respectively. Machinery orders experienced a sharper 1.6 percent decline.”
Shipments, up five of the last six months, increased 3.3 percent to $248.9 billion. This was at the highest level since the series was first published on a NAICS basis and followed a 1.2 percent June increase. Transportation equipment, up two consecutive months, led the increase, 7.9 percent to $76.3 billion.
Unfilled orders, up fifteen of the last sixteen months, increased 5.4 percent to $1,158.5 billion. This was at the highest level since the series was first published on a NAICS basis and followed a 1 percent June increase. Transportation equipment, up ten of the last eleven months, led the increase, 8.3 percent to $738.4 billion.
Inventories, up fifteen of the last sixteen months, increased 0.5 percent to $401.9 billion. This was at the highest level since the series was first published on a NAICS basis and followed a 0.5 percent June increase. Transportation equipment, also up fifteen of the last sixteen months, led the increase, 0.5 percent to $129.6 billion.
