Durable Goods Orders Fell in May

New orders for manufactured durable goods fell 2.2 percent to $230.7 billion in May, following a 3.3 percent April increase, according to the U.S. Census Bureau. The majority of the month’s decrease was driven by a 5.6 percent decline in new orders for transportation equipment. Excluding transportation, new orders fell 0.3 percent.

New orders excluding defense decreased 0.9 percent on the month, as orders of nondefense capital goods fell 0.8 percent to $68.5 billion, which was partially offset by a 1.0 percent increase in new orders for nondefense aircraft and parts.

Shipments of manufactured durable goods fell 0.2 percent in May to $231.7 billion, after a 0.4 percent April increase.

Inventories of manufactured durable goods fell 0.3 percent to $382.5 billion, following a 0.4 percent April decrease. Inventories have now declined for ten of the last eleven months.

Read the Census release.

About Tim Nicholson

Tim Nicholson
Tim Nicholson is an economic research associate at ABA.
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