Durable Orders Surprise Higher with Surge in Transportation Equipment

US durable goods orders rose 1.9% month-over-month in June ahead of a consensus -0.5%, following after a 0.8 percent decrease in May. New orders for transportation equipment surged $4.5 billion or 5.1 percent to $92.7 billion, these new orders for nondefense aircraft and parts have risen for three consecutive months. One of the main components of that transport rise was Boeing who reported earnings today, $BA said they increased 737 production to 31 per month with a backlog of $372 billion Including over 4200 commercial planes.

June 2022 US Durable Orders Highlights

  • US Durable Goods Orders Jun P: 1.9% (est -0.4%; prev 0.8%)
  • Durable Goods Ex Trans: 0.3% (est 0.2%; prev 0.7%; prevR 0.5%)
  • Orders Nondef Ex Air: 0.5% (est 0.2%; prev 0.6%; prevR 0.5%)
  • Ship Nondef Ex Air: 0.7% (est 0.2%; prev 0.8%; prevR 1.0%)
United States Durable Goods Orders
  • New orders for primary metals decreased 1.1% after increasing 2.0% in May.
  • New orders for fabricated metal products were up 0.3% following a 0.2% decline in May.
  • New orders for machinery slipped 0.2% following a 1.3% increase in May. The 5.1% increase in new orders for transportation equipment was driven by a 1.5% increase in new orders for motor vehicles and parts and an 80.6% increase in new orders for defense aircraft and parts.
  • Shipments of nondefense capital goods, excluding aircraft, jumped 0.7% after increasing 1.0% in May. This component factors into GDP computations, so it is a positive input for Q2 GDP.

Source: US Census Bureau

From The TradersCommunity NewsDesk