Rapidly Accelerating Growth in Durable Goods Orders Continues

The annual rate of growth accelerated for the 12th month in a row. May’s annual rate of growth of 7.0 percent was the fastest since July 2012.

New orders for real durable goods in May 2018 were $252,995 million. Compared with one year ago, durable goods new orders grew 8.1 percent, which was the 13th straight month of growth and the 15th in the last 16. This was the third time in four months where growth was faster than 8.0 percent. Therefore, the annual rate of growth accelerated for the 12th month in a row, the fastest since July 2012 at 7.0 percent. This is a very good sign for durable goods production and capital equipment consumption.

Motor vehicle and parts orders decreased 1.3 percent compared with one year ago. May was the only month of contraction in 2018. Annually, order growth decelerated but has been generally flat since mid 2016.

Aerospace orders increased 47.9 percent in May compared with one year ago, growing more than 14 percent for seventh consecutive month. Annually, the rate of growth accelerated for to 23.0 percent, the fastest rate of growth since July 2014.

Accelerating Growth: aerospace, computers/electronics, durable goods, fabricated metal products, HVAC, primary metals, ship/boat building, total capital goods

Decelerating Growth: construction materials, machinery/equipment, motor vehicle/parts, oil/gas-field/mining machinery, off-road/construction machinery, power generation

Decelerating Contraction: appliances


Top Shops

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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.