US May advance durable goods orders (preliminary) 1.7% versus -1.0% expected

<ul><li>Prior month +1.1% revised to 1.2%</li><li>Durable goods orders 1.7% versus expectations of -1.0%. Prior month +1.1% revised to 1.2%. This marks an increase for three consecutive months, following a 1.2 percent increase in April.</li><li>Transportation equipment orders led the increase, going up $3.9 billion or 3.9 percent to $102.6 billion.</li><li>Ex Transportation 0.6% versus expectations of -0.1%. Prior month -0.2% revised to -0.6%</li><li>Ex Defense 3.0% versus the prior month of -0.6% revised to -0.5%. </li><li>Non-defense Cap Ex-air 0.7% vs expectations of 0.0%. Prior month +1.4% revised to 0.6%</li></ul><p>Further details of shipments, unfilled orders, and inventories show: </p><p>Shipments:</p><ul><li>Shipments of manufactured durable goods in May increased $4.8 billion or 1.7 percent to $282.7 billion.</li><li>This marks an increase in two of the last three months, following a 0.6 percent decrease in April.</li><li>Transportation equipment shipments led the increase, going up $4.0 billion or 4.6 percent to $91.8 billion.</li></ul><p>Unfilled Orders:</p><ul><li>Unfilled orders for manufactured durable goods in May increased $10.6 billion or 0.8 percent to $1,302.0 billion.</li><li>This marked an increase for five of the last six months, following a 0.8 percent increase in April.</li><li>Transportation equipment orders led this increase, going up $10.8 billion or 1.4 percent to $803.9 billion.</li></ul><p>Inventories:</p><ul><li>Inventories of manufactured durable goods in May increased $1.2 billion or 0.2 percent to $522.9 billion.</li><li>This marks an increase for five of the last six months, following a 1.0 percent increase in April.</li><li>Machinery led this increase, with a rise of $0.5 billion or 0.5 percent to $94.4 billion.</li></ul><p>A look at Capital goods shows:</p><p>Capital Goods:</p><ul><li>Nondefense new orders for capital goods in May increased $5.7 billion or 6.7 percent to $91.0 billion.</li><li>Shipments increased $2.7 billion or 3.4 percent to $82.9 billion.</li><li>Unfilled orders increased $8.1 billion or 1.1 percent to $748.7 billion.</li><li>Inventories increased $0.1 billion or 0.1 percent to $225.5 billion.</li><li>Defense new orders for capital goods in May decreased $2.7 billion or 14.7 percent to $15.9 billion.</li><li>Shipments decreased $0.2 billion or 1.2 percent to $13.2 billion.</li><li>Unfilled orders increased $2.7 billion or 1.3 percent to $213.6 billion.</li><li>Inventories increased $0.1 billion or 0.2 percent to $24.2 billion.</li></ul><p>Overall better than expected orders data. Shipments increased as well, as did unfilled orders. Transportation led the gains. With air traffic increasing post-pandemic, the suppressed orders from those years are being backfilled. </p><p>The durable goods report will be revised when factory orders are released in a week or so.</p>

This article was written by Greg Michalowski at www.forexlive.com.