Posted July 28, 2010
Durable goods orders decline
New orders for manufactured durable goods in June decreased $2.0 billion or 1.0 percent to $190.5 billion, the U.S. Census Bureau announced today.
This was the second consecutive monthly decrease and followed a 0.8 percent May decrease. Excluding transportation, new orders decreased 0.6 percent. Excluding defense, new orders decreased 0.7 percent.
Transportation equipment, down four of the last five months, had the largest decrease, $1.1 billion or 2.4 percent to $45.9 billion. This was due to nondefense aircraft and parts, which decreased $1.8 billion.
"Amidst a sluggish and increasingly uncertain economic recovery, the June report on demand for long-lasting consumer and capital goods shows that the manufacturing recovery, while still on track, is clearly slowing," said Cliff Waldman, economist for the Manufacturers Alliance/MAPI. "Excluding the volatile transportation category, orders fell by 0.6 percent, the second decline in three months. Year-to-date total orders excluding transportation were up more than 15 percent but the data from pivotal sectors of the manufacturing supply chain suggest that the underpinnings of the strong factory sector recovery are clearly weakening. Primary metals demand fell by 2 percent, the second consecutive monthly decline, while machinery demand declined by 0.7 percent, the second drop in the past three months."
