WASHINGTON – The value of U.S. durable goods new orders fell 1.1% in May, well below expectations for a 0.5% decline, as transportation orders plunged 3.4% and nontransportation orders posted only a modest 0.1% gain, data released Monday by the Commerce Department showed.
The small increase in new orders excluding transportation was below the 0.4% gain expected and reflected mixed components. A strong increase in electrical equipment and smaller gains in primary metals and machinery were offset by declines in fabricated metals, computers and electronics, and the "all other durables" category.
Nondefense aircraft orders fell 11.7% in May, adding to a 30.8% drop in defense aircraft orders. In addition, transportation orders excluding motor vehicles and aircraft fell 4.6%, according to an MNI calculation.
Motor vehicles orders provided some offset, rising 1.2% in May after a 0.5% gain in April.
Nondefense capital goods new orders fell 2.4%, primarily due to a sharp drop in civilian aircraft orders, but were still down 0.2% excluding civilian aircraft.
Durable goods shipments rose 0.8% in May, with nondefense capital goods shipments up 0.4%, but down 0.2% excluding civilian aircraft shipments.
Durable goods inventories were up 0.2% in the month, while unfilled orders were down 0.2%.
