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


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