US durable goods orders fell sharply in June, according to data out on Friday from the Census Bureau, partly reversing the strongest monthly growth in 11 years in May.
Source: Sharecast
Orders received by manufacturers of goods designed to last at least three years dropped 9.3% last month to $311.8bn, registering the biggest monthly decline in April 2020.
However, this wasn't as bad as the 10.8% fall predicted by analysts after the 16.5% surge in orders in May – the steepest rate of growth since July 2014 – which followed a sharp drop in April as a result of purchasing managers frontloading orders before trade tariffs kicked in.
According to the Census Bureau, new orders for transportation equipment slumped 22.4% over the month to $113bn. When excluding these, durable goods orders were actually up 0.2%, following 0.6% growth the previous month.
Shipments of manufactured durable goods were up for the seventh straight month, rising 0.5% to $302.5bn, following a 0.2% increase in May.
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