New orders for manufacturers fell 0.8% in June on a seasonally adjusted basis, the Commerce Department reported Wednesday. Excluding transportation, new orders rose 0.1%. The June orders followed a revised 0.6% increase and a zero per cent change in ex-transportation orders for May.
The median estimate of economists polled by Thomson Reuters was for a 0.7% decline in total orders. Economists generally predicted declines based on the 2.1% drop in June Durable Goods orders reported on July 27. That durables number was revised to a 1.9% decline in the Wednesday report. Durable goods excluding transportation rose 0.4% in June.
Aircraft orders were a major factor in June’s decline, with non-defense orders falling 28.9% and defense aircraft down 20.5%. Orders for vehicles fell 2.7%
The non-defense capital goods excluding aircraft category, an indication of manufacturing health, was up 0.4%. That followed a revised 1.9% rise in May. There was a 1.9% decline in machinery orders and a 0.8% rise in electric equipment
Orders for non-durable goods industries showed no change in June after a 0.5% decline in May. J.P. Morgan economists said based on earlier reports that prices for petroleum products fell but other categories of non-durable goods had shown increases.
Shipments were up 0.2%, unfilled orders up 0.3% and inventories up 0.2%.
