June 24 — New orders for durable goods increased 2.3 percent based largely on an increase in orders for transportation equipment, the U.S. Commerce Department said today.
New orders for manufactured durable goods in May increased $5.7 billion (2.3 percent) to $253.3 billion, according to the report. This increase, up twelve of the last thirteen months, followed a 0.8 percent April decrease. Excluding transportation, new orders increased 0.3 percent. Excluding defense, new orders increased 1.7 percent. Transportation equipment, up following two consecutive monthly decreases, led the increase at $5.2 billion (7.6 percent) to $74.2 billion.
The report demonstrated that U.S. manufacturers are still expanding rapidly, but widespread shortages of supplies and labor are said to be preventing them from growing even faster.
Orders had fallen in April for the first time since early in the pandemic, but the decline was said to have been caused by the inability of automakers and other manufacturers to procure enough supplies to keep production going at full speed.
Shipments of manufactured durable goods, up two of the last three months in May, increased $1.0 billion (0.4 percent) to $248.3 billion. This followed a virtually unchanged April decrease. Machinery, up seven of the last eight months, led the increase, $0.4 billion (1.1 percent) to $35.1 billion.
Most economists agree that the U.S. economy has strong momentum, with pent-up consumer demand, rising wages and government stimulus fueling growth as the pandemic recedes. Businesses are adding more workers, but a shortage of labor and materials has increased business costs. As companies move to pass those costs onto customers, inflation is increasing.
Unfilled orders for manufactured durable goods in May, up four consecutive months, increased $9.5 billion (0.8 percent) to $1,209.3 billion. This followed a 0.4 percent April increase. Transportation equipment, up three of the last four months, led the increase, $3.1 billion (0.4 percent) to $806.2 billion.
Inventories of manufactured durable goods in May, up four consecutive months, increased $2.9 billion (0.7 percent) to $445.3 billion. This followed a 0.7 percent April increase. Primary metals, up ten consecutive months, led the increase, $0.9 billion (2.4 percent) to $38.5 billion.
Non-defense new orders for capital goods in May increased $2.2 billion (2.7 percent) to $83.6 billion. Shipments decreased $0.5 billion (0.7 percent) to $77.7 billion. Unfilled orders increased $5.9 billion (0.8 percent) to $729.8 billion
Defense new orders for capital goods in May increased $1.6 billion (17.4 percent) to $10.7 billion. Shipments decreased $0.3 billion (2.6 percent) to $11.9 billion. Unfilled orders decreased $1.3 billion (0.7 percent) to $190.6 billion. Inventories decreased less than $0.1 billion (0.1 percent) to $20.9 billion.
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