Durable Goods Orders Jump 4.9 Percent

New orders for manufactured durable goods in July made the largest percent increase in two years, according to a report Aug. 26 from the U.S. Census Bureau.

New orders jumped $7.8 billion or 4.9 percent to $168.4 billion, the Census Bureau said. This was the third increase in the last four months, following a 1.3 percent June decrease. Excluding transportation, new orders increased 0.8 percent. Excluding defense, new orders increased 4.3 percent.

Shipments of manufactured durable goods in July increased for the second consecutive month, climbing $3.5 billion or 2 percent to $173.1 billion. This followed a 0.7 percent June increase.

Unfilled orders for manufactured durable goods in July decreased $0.4 billion or 0.1 percent to $740.2 billion. In its tenth consecutive month, the streak of decreases is the longest since the Census Bureau first published the series on a NAICS basis in 1992. But it was a smaller decrease than the 0.8 percent drop in June.

Inventories of manufactured durable goods in July, down seven consecutive months, decreased $2.7 billion or 0.8 percent to $314.1 billion. This followed a 1.5 percent June decrease.

Nondefense new orders for capital goods in July increased $4.6 billion or 8.6 percent to $57.5 billion.

Defense new orders for capital goods in July increased $1.3 billion or 14.8 percent to $9.8 billion.

Contact Thomas L. Gallagher at tgallagher@joc.com.