Durable Goods Orders Contract for Fourth Month

Despite growth in motor vehicles and parts orders, most other industries contracted compared with previous months.

New orders for real durable goods in May totaled $245,008 million, which was down 5.6% from one year ago. May was the fourth-straight month that new orders contracted more than 2.2%. These are the first consecutive months of contraction since early 2017. The annual rate of growth decelerated for the seventh month in a row, moving from 2.6% to 1.5%. This was the slowest rate of annual growth since June 2017.

Compared with one year ago, new orders for motor vehicles and parts grew 6.8% in May. That was the fastest month-over-month rate of growth since December 2018. The annual rate of growth accelerated to 6.0% but is likely to decelerate more in future months. 

Aerospace orders contracted 80.2%, contracting for the seventh time in eight months. The significant contraction was likely due to the cancellation or orders for the Boeing 737 SuperMax. Additionally, this was fourth consecutive month that aerospace orders contracted more than 21%. The annual rate of contraction accelerated for the third month in a row to -13.2%, which was the fastest rate of contraction since June 2016.

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, oil/gas-field/mining machinery, ship/boat building, total capital goods

Decelerating Contraction: appliances

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