WASHINGTON — The value of U.S. durable goods new orders fell 0.6% in May, a smaller drop than the 0.8% decrease expected by analysts in an MNI survey and following a large upward revision to the decline in the previous month, data released Wednesday by the Commerce Department showed.
The main driver of the May decline was a 1.0% drop in transportation orders. However, there was underlying weakness as new orders excluding transportation orders posted a surprise 0.3% decrease on declines in almost every component. Analysts had expected this component to rise 0.4%, continuing a string of gains back to February.
Nondefense aircraft and parts new orders fell 7.0% in May following a 30.3% decline in the previous month. In addition, motor vehicles and parts orders declined 4.2%, pulling the transportation component lower.
Those declines were offset by a 21.1% jump in defense orders and a 20.0% rise in transportation orders excluding motor vehicles and aircraft, according to an MNI calculation.
Nondefense capital goods new orders fell 2.0%, and were still down 0.2% excluding a drop in civilian aircraft orders following a 2.3% gain in April.
Durable goods shipments fell 0.1% in May due to a drop in transportation, but nondefense capital goods shipments were up 3.0%. Nondefense capital goods orders ex. aircraft were down 0.1% after a 1.0% gain in the previous month, a similar pattern to new orders.
Durable goods inventories rose 0.3% in the month, while unfilled orders posted a 0.5% increase.
