WASHINGTON — The July durables orders rose a record 22.6% (data revisions run back 22 years), ex-transportation orders fell 0.8%, and ex-defense orders were up 24.9%.
Massive orders at Boeing Corp. resulting from the U.K. air show boosted the totals and created the new records, but distorted most readings.
Nondefense aircraft orders posted a 318% surge. Before seasonal adjustment the gain was more than $51 billion, and the adjustment added to the total.
Durables orders now are up in five of the last six months. But underlying orders are not as strong, with orders ex-transportation down in two of the last three months.
Core orders were weak in July, with primary metals at a 0.3% decline, machinery fell 1.6%, computers dropped 1.2%, and electronics decreased 3.7%. Motor vehicles, where unit new sales remain strong, were up 10.2%. The combination of rising aircraft and auto orders meant transportation, capital goods, and nondefense capital goods all posted record gains on the month.
Shipments posted a 3.3% gain, and inventories were up 0.5% in a smaller build than in Q2.
Nondefense capital goods shipments ex aircraft were up 1.5% in a decent start to Q3 capital spending. NDCG orders were down 0.5%, suggesting this strength probably will not hold for the entire period.
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