Demand for Durable Goods Posts 1st Back-To-Back Decline in 2 Years

New orders for manufactured durable goods in May decreased $0.6 billion or 0.3% to $208.7 billion, the U.S. Census Bureau announced today. This is the first back-to-back monthly decrease in two years, as it follows a 4.7% decrease in April, providing further evidence that the U.S. economy is slowing under the impact of rising interest rates, soaring gasoline prices and a cooling housing market. The weakness in both months was led by big declines in orders for commercial aircraft, an extremely volatile category that had been enjoying large gains at the beginning of the year (AP).

  • Orders for transportation equipment fell by 2.6%, reflecting a 17.9% plunge in demand for commercial aircraft.
  • Orders for autos and auto parts rose 2.5% in May following a 2% drop in April.
  • Excluding transportation, orders for durable goods, would have risen by 0.7% following a 1% drop in April excluding transportation.
  • The category of non-defense capital goods excluding aircraft posted a 1% gain in May after a 1.9% drop in April.
  • Inventories of manufactured durable goods in May, up four of the last five months, increased 0.4% to $279.7 billion. This followed a 1.1% April increase.
 

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