Factory Shipments Fall, Orders Gain in May

Record losing streak deepens, but signs of recovery mount

Shipments of manufactured durable goods declined for the tenth consecutive month in May, deepening what was already the longest streak of decreases on record at the U.S. Census Bureau. But new orders increased for the third time in the last four months, in a sign that the bottom of the economic downturn may have passed.

 

Shipments of manufactured durable goods in May, down ten consecutive months, decreased $3.6 billion or 2.1 percent to $169.9 billion, the Census Bureau said. April’s decrease was 0.5 percent.

 

New orders for manufactured durable goods in May increased $2.8 billion or 1.8 percent to $163.9 billion. New orders gained 1.8 percent in April. Excluding transportation, new orders increased 1.1 percent. Excluding defense, new orders also increased 1.4 percent, the Census Bureau said.

 

Unfilled orders, down eight consecutive months, decreased $2 billion or 0.3 percent to $747.5 billion, following a 1.1 percent April decrease. Inventories, down five consecutive months, decreased $2.5 billion or 0.8 percent to $323.3 billion, following a 1.1 percent decrease in April.

 

Nondefense new orders for capital goods in May increased $4.9 billion or 10 percent to $53.8 billion. Defense new orders for capital goods in May increased $0.8 billion or 7.4 percent to $12 billion.

 

(Source: Journal of Commerce)