Durables orders sharply beat expectations at the headline level but it was almost entirely due to aircraft orders at Boeing. Elsewhere, durables orders were mixed, ending net at flat for June. New factory orders for durables in June surged 4.2 percent, following an upward revised 5.2 percent (originally 3.7 percent) for May. Market expectations were for a 1.5 percent boost for June. The transportation component spiked 12.8 percent after a 14.8 percent jump in May. Excluding transportation, durables orders were unchanged in June, following a 1.0 percent rise in May. The consensus expected a 0.6 percent decrease in orders excluding transportation.
Unfilled orders, however suggest some overall continuing momentum for manufacturing. Overall unfilled orders jumped 2.1 percent in June, following a 1.1 percent increase in May. This was mostly aircraft but non-transportation was still respectable. Unfilled durables excluding transportation increased 0.9 percent in June, matching the May pace.
Turning back to new orders data, within transportation, motor vehicles gained 1.3 percent, nondefense aircraft jumped 31.4 percent, and defense aircraft increased 18.7 percent. Outside of transportation, components were mixed but net zero. Gains were seen in fabricated metals, machinery, and "other." Declines were seen in primary metals, computers & electronics, and electrical equipment.
Unfilled orders, however suggest some overall continuing momentum for manufacturing. Overall unfilled orders jumped 2.1 percent in June, following a 1.1 percent increase in May. This was mostly aircraft but non-transportation was still respectable. Unfilled durables excluding transportation increased 0.9 percent in June, matching the May pace.
Turning back to new orders data, within transportation, motor vehicles gained 1.3 percent, nondefense aircraft jumped 31.4 percent, and defense aircraft increased 18.7 percent. Outside of transportation, components were mixed but net zero. Gains were seen in fabricated metals, machinery, and "other." Declines were seen in primary metals, computers & electronics, and electrical equipment.
