U.S. Durable Goods Orders Rise in February

New orders for durable manufactured goods increased 0.9% (3.4% y/y) during February after increasing 3.3% in January, revised from 3.2%. A 1.2% decline had been expected in the Action Economics Forecast Survey. A 1.5% rise (6.1% y/y) in transportation sector orders drove the gain as it followed a 10.2% jump. Excluding the transportation sector, new orders for durable goods rose 0.7% (2.0% y/y) as it followed a 0.1% uptick.

The February rise in transportation orders was driven by a 4.0% increase (0.2% y/y) in motor vehicles & parts which followed a 1.9% January decline. Aircraft & parts orders fell 1.8% (18.4% y/y). Electrical equipment, appliance & component orders strengthened 2.0% (4.5% y/y) after falling 1.2% in January. Primary metals orders rose 1.2% (4.2% y/y) while orders for fabricated metals rose 0.9%. Showing lesser strength, machinery orders rose 0.2% (0.1% y/y) after little-change in January but computers & electronic product orders also were fairly steady (+4.5% y/y) after strengthening 1.8% in January. Nondefense capital goods orders fell 1.5% (+3.9% y/y) after rising 12.8%, while nondefense capital goods orders excluding aircraft declined 0.3% (+1.4% y/y) in February after increasing 0.9% in January.

Factory shipments of durable goods rose 1.2% (3.6% y/y) in February after a 0.7% January rise. Transportation sector shipments increased 2.0% (7.8% y/y) after a 1.6% gain. Shipments excluding the transportation sector improved 0.8% (1.7% y/y) following a 0.3% rise. Machinery shipments gained 0.6% (0.1% y/y) following a 0.3% decline while computer & electronic product shipments rose 1.2% (3.6% y/y) after rising 0.8%. Shipments of electronics & appliances rose 0.7% (3.2% y/y) after a 0.3% decline. Shipments of all manufactured products rose 0.8% (2.7% y/y) in February after improving 0.5% in January. Shipments of nondefense capital goods less aircraft rose 0.9% (0.4% y/y) after falling 0.2% in January.

Unfilled orders of durable goods edged 0.1% higher (0.6% y/y) during February after a 0.2% January gain. Excluding transportation, backlogs held steady (+0.7% y/y) following a 0.1% uptick. Inventories of durable goods edged 0.1% higher (0.9% y/y) following no change in January. Less transportation, durable goods inventories were unchanged both m/m and y/y. Inventories of all manufactured products rose 0.2% (0.9% following a 0.1% January rise.

Manufacturers’ orders and shipments of durable and nondurable goods, along with unfilled orders and inventories, are compiled by the U.S. Census Bureau. They are available in Haver’s USECON database. The Action Economics forecast data are in the AS1REPNA database.