Durable Goods Orders Rate Continues Trend

April was the third-straight month that new orders contracted more than 2.2%. 

New orders for real durable goods in April totaled $245,248 million, which was down 2.7% from one year ago. April was the third-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 sixth month in a row, moving from 3.6% to 2.6%. This was the slowest rate of annual growth since August 2017.

Compared with one year ago, few orders for motor vehicles and parts grew just 0.9% in April. That was the slowest month-over-month growth since orders contracted in May 2018. The annual rate of growth accelerated 5.2% and should to decelerate more in future months. 

Aerospace orders contracted 33.9%, contracting for the sixth time in seven months. Additionally, this was third consecutive month that aerospace orders contracted more than 21%. The annual rate of change contracted for the second month in a row.

Accelerating Growth: HVAC, power generation

Decelerating Growth: computers/electronics, construction materials, durable goods, fabricated metal products, machinery/equipment, motor vehicle/parts, off-road/construction machinery, primary metals, total capital goods

Accelerating Contraction: aerospace, oil/gas-field/mining machinery

Decelerating Contraction: appliances, ship/boat building

Reports

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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.