USA orders for long lasting manufactured goods fell more than forecast in May, while the core reading bounced back only slightly from a prior decline, dampening optimism over the US economy, according to official data released on Monday.
- Durable-goods inventories rose 0.2 percent; unfilled orders for non-defense capital goods excluding aircraft advanced 0.2 percent. Excluding transportation goods, orders actually ticked up 0.1 per cent, after dropping the previous month.
The broad slowdown in equipment orders and shipments raises the risk that business investment will provide less of a boost than anticipated to the economic rebound this quarter, leaving the heavy lifting to household spending.
The economy grew at a tepid 1.2 percent annual rate in the first three months of the year.
Orders for defense aircraft declined by 30.8 percent last month, while orders for civilian airplanes fell by 11.7 percent, the department said. Recent data on retail sales, manufacturing production and inflation have given pause and housing data has been mixed.
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US durable goods orders dropped on a sequential basis in May, falling more than consensus expectations.
- Orders for fabricated metal products fell 0.2 percent after a 1 percent decline; machinery orders rose 0.6 percent. USA stocks dipped in pre-market trading but had rebounded to trade mostly higher later in the session. It was the largest decline in six months and followed a 0.9 percent decline in April. Underlying orders had declined 0.5% for April, but there was a year-on-year increase of 4.6%.
Transportation orders were down by 3.4% in comparison to April, reaching $75.41bn.
The picture for defense aircraft and parts orders was even worse. Orders for motor vehicles and parts increased 1.2 percent.