US July durable goods orders drop 7.3% with aircraft off 52.3%

26 August 2013 15:39  [Source: ICIS news]

WASHINGTON (ICIS)--New orders for US durable goods fell sharply in July from June, the Commerce Department said on Monday, dropping by 7.3% overall largely due to a 52.3% plummet in orders for civilian airliners and parts.

In its monthly report, the department said that new orders for durable goods last month decreased by $17.8bn (€13.35bn) or 7.3% to $226.6bn.

The sharp July downturn followed three consecutive months of gains.

Almost all of the July decline was attributed to a drop of $14.5bn in orders for civilian aircraft and parts, a decline of 52.3%.

Military aircraft and parts orders also were down in July but by a more modest 2.2%.

With aircraft and other transportation equipment orders backed out of the total, the overall decline was 0.6% in July from June.

Aircraft orders often are made in multiple-plane purchases and in any given month those commitments - or their lack - can affect manufacturing data disproportionately.

Durable goods are manufactured products meant to last three years or more and include such items as automobiles, appliances, transportation and manufacturing equipment.

Many durable goods, such as computers and automobiles, are major downstream markets for chemicals and derivatives used in manufacturing processes or as end-product components.

The report also noted that unfilled orders for US durable goods rose by $4.4bn or 0.4% in July from June to $1,034.3bn. That advance followed a 2.1% gain in June and marks the level since this data series was initiated in 1992.

Inventories of produced but unsold durable goods also rose in July from June, rising by $1.3bn or 0.4% to $379.1bn, the report said.

US durable goods orders and inventories*

 

July (bn $)

July vs June (%)

    June vs May (r)        (%)

New orders

226.6

-7.3

3.9

Unfilled orders

1,034.3

0.4

2.1

Total inventories

379.1

0.4

0.2

r: revised  *seasonally adjusted

($1 = €0.75)

Paul Hodges studies key influencers shaping the chemical industry in Chemicals and the Economy


By: Joe Kamalick
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