US Durable Goods Orders Miss Expectations in June

New orders for manufactured durable goods in the United States registered a modest increase of 0.3% in June, according to the latest data. This figure fell considerably short of economists' expectations for a 2.5% expansion. The previous month's reading was also revised, showing a 4.0% contraction from an initial estimate of -4.5%.

Excluding the volatile transportation sector, durable goods orders increased by 0.6%, slightly under the 0.8% forecast. The prior month saw a 1.8% rise in this category. Orders excluding defense items also showed a 0.3% increase for June, a notable shift from the previous month's 4.3% decline. Non-defense capital goods orders, excluding aircraft, rose by 0.9%, surpassing the 0.8% expectation, though this was less than May's 1.9% gain.

For retail forex and CFD traders, these economic indicators offer insight into the health of the manufacturing sector, which can influence currency movements like the US Dollar and broader market sentiment. Weaker-than-expected data might suggest slowing economic activity, potentially leading to a less hawkish stance from the Federal Reserve, while stronger data could indicate robust growth.

Shipments, Inventories, and Unfilled Orders

• Shipments: Manufactured durable goods shipments advanced by $2.4 billion (0.7%) in June, reaching $330.7 billion. This follows a 1.1% increase in May, indicating continued growth. Computers and electronic products were a key driver, increasing by $0.8 billion (2.4%), marking their ninth consecutive monthly rise.
• Unfilled Orders: The value of unfilled orders grew by $9.3 billion (0.6%) to $1.590 trillion, building on a 0.7% gain in May. Transportation equipment contributed significantly to this increase, rising by $4.1 billion (0.4%) to $1.002 trillion. Notably, unfilled orders have expanded in 23 of the last 24 months.
• Inventories: Inventories of manufactured durable goods saw a $2.0 billion (0.3%) increase, reaching $602.0 billion, following a 0.1% rise in May. Transportation equipment inventories rose by $0.6 billion (0.3%) to $190.6 billion. This marks the ninth consecutive month of increasing durable goods inventories.

Overall, while new orders fell below forecasts, underlying metrics such as shipments, unfilled orders, and inventories continued to show growth, suggesting ongoing activity within the manufacturing sector despite the headline miss.