Durable Goods Order Contraction Accelerates for Fifth Month

In June, durable goods new orders contracted 7.0% compared with one year ago.

New orders for real durable goods totaled $259,167 million in June, which was down 7.0% from one year ago. June was the fifth-straight month of accelerating contraction. The annual rate of growth decelerated for the eighth month in a row, moving from 1.4% to 0.8%. This was the slowest rate of annual growth since June 2017.

Compared with one year ago, new orders for motor vehicles and parts grew 2.4% in June. That was the second-slowest month-over-month rate of growth since July 2018. The annual rate of growth accelerated to 6.1%, but it is likely to decelerate in future months. 

Aerospace orders contracted 48.8%, contracting for the eighth time in nine months. Additionally, it was the fourth time in five month that the month-over-month rate of change contracted more than 30%.  The annual rate of contraction accelerated for the fourth month in a row to -15.4%, which was the fastest rate of contraction since June 2016. While non-defense orders are in an accelerating contraction mode, defense orders are growing rapidly.

Accelerating Growth: motor vehicle/parts, power generation

Decelerating Growth: computers/electronics, construction materials, durable goods, fabricated metal products, HVAC, primary metals

Accelerating Contraction: aerospace, machinery/equipment, off-road/construction machinery, ship/boat building, total capital goods

Decelerating Contraction: appliances, oil/gas-field/mining machinery

Reports

Top Shops

‘Top Shops’ is a benchmarking and recognition program designed to help shops build their business.

World Machine Tool Survey

An independent annual survey that collects statistics from machine tool consuming and producing countries and compares them in real U.S. dollars.

Capital Spending Survey

An annual survey that collects statistics regarding budgeted spending on machine tools, testing equipment, software and more.

Gardner Business Index

A diffusion index measuring month-to-month changes in activity at durable goods and discrete parts manufacturing facilities.