WASHINGTON (MNI) - The latest U.S. durables goods data suggest a lack of momentum in manufacturing.
May durables goods orders posted -2.2% after two months of gains, and ex transportation orders posted -0.3% and ex defense -0.9%. Nondefense orders have been lower in three of the last four months.
The results suggest a stalling in orders as the spring unfolded, although the orders series tends to be erratic. The April-May average for overall durables orders stands about 9% higher on an annualized basis from the Q1 average. This mainly reflects aircraft orders, however.
In May, nondefense capital goods orders ex aircraft posted -0.7%, and these shipments were down 0.5%.
Nondefense aircraft orders jumped 1.0% after adjustment. Unadjusted orders were up almost 26% as Boeing Corp. reported a surge in their order book.
But motor vehicle and parts orders posted -2.8%, lowering the transportation total. Orders for primary metals posted -1.4%, machinery -0.2%, computers -0.1%, and electronics -0.1%. This means all other areas were weak.
Overall shipments fell 0.2% and inventories fell 0.3%, rounding out a pretty weak report.
