U.S. Durable Goods Orders Flat in May despite Strong Aircraft, Computers

Orders for U.S. durable manufactured goods were basically flat in May despite strong demands for aircraft and computers, the Commerce Department reported Wednesday.

Strength in demand for aircraft and computers was somewhat offset by widespread weakness elsewhere last month, following declines of 1 percent in April and 0.2 percent in March.

Excluding volatile transportation demand, orders for durable goods would have decreased 0.9 percent, reflecting weakness in a number of areas outside transportation.

Orders for commercial aircraft, computer equipment and communications equipment increased by 10.3 percent, 10.1 percent and 2.4 percent respectively last month, while demand for autos and parts fell by 3.3 percent due to recent weakness in the auto industry.

Orders for primary metals also dropped by 1.3 percent in May while machinery orders were down 5.3 percent.

The weakness in orders for durable goods, big-ticket items expected to last at least three years, showed that the U.S. manufacturing sector continues to suffer in a weak overall economy, dragged down by a prolonged slump in the housing sector and the severe credit crisis.

Demand for non-defense capital goods excluding aircraft, a closely watched guide to business investment plans, fell by 0.8 percent last month, after rising 3.1 percent in April, which had been the best showing since last December. 

 

Source: CRIEnglish