Durable-Goods Orders Fall--Update
June 26 2019 - 11:34AM
Dow Jones News
By Sarah Chaney
Orders for long-lasting goods declined in May, reflecting a drop
in civilian aircraft orders that masked underlying strength in
capital goods.
Overall orders for durable goods, manufactured products intended
to last at least three years, fell 1.3% in May from the prior
month, the Commerce Department said Wednesday.
Much of the drop owed to the volatile civilian aircraft and
spares component, which likely reflected seasonal noise: Jetliner
sales are traditionally light ahead of the biennial air shows in
Paris and Farnborough, England.
Boeing Co. booked no jetliner sales last month, contributing to
the weakness in aircraft orders. The aerospace giant reported four
orders for 737 MAX jets in April.
When excluding the transportation category, orders grew at a
0.3% pace.
An underlying business-investment gauge, new orders for
nondefense capital goods excluding aircraft, increased 0.4% from
April. Part of the rise in capital spending could reflect payback
from April, when companies pulled back sharply on investment.
Though Wednesday's report is broadly positive, other measures of
U.S. manufacturing have shown cooling after a robust 2018. The
Institute for Supply Management said its measure of factory-sector
activity slowed in May. Other Federal Reserve data show
manufacturing output has declined since the end of last year.
Global economic growth has slowed, as trade tensions between the
U.S. and its global partners heightened and central banks around
the world tightened financial conditions. These factors could be
damping demand for U.S.-made products.
--Doug Cameron contributed to this article.
Write to Sarah Chaney at sarah.chaney@wsj.com
(END) Dow Jones Newswires
June 26, 2019 11:19 ET (15:19 GMT)
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