–Ex-Defense Orders -0.7%, Ex-Transport Orders -0.6%;Civ Aircraft -25.6%
By Joseph Plocek
WASHINGTON (MNI) – U.S. June durable goods orders were weaker than
expected at -1.0%, marking their second month down, and suggesting that
manufacturing is slowing.
Excluding transportation, orders printed -0.6% and excluding
defense -0.7%. Both suggest slower underlying orders. Ex-transportation
orders are down in two of the last three months; ex-defense orders are
down for the second consecutive month.
Boeing Corp. reported 49 new orders against five in May, so the
surprise was that nondefense aircraft orders posted -25.6%, following a
more than 30% drop in May.
Broad weakness was seen in primary metals at -2.0%, machinery at
-0.7%, and computers at -1.9%, and overall transportation at -2.4%,
representing about two-thirds of orders categories. Electrical equipment
orders posted +3.7% and autos +2.5%.
Shipments were down 0.3% and Inventories up 0.9% in a classic sign
of industry slowing.
Nondefense capital goods shipments rose 0.6% but their Q2 average
is still ending below the March level, suggesting a dip in business
investment in the GDP accounts. This suggests one growth support —
manufacturing — was waning as Q2 came to a close.
**Market News International Washington Bureau: (202)371-2121**
[TOPICS: MAUDS$,MFU$$$,MGU$$$,MAUDR$]
