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1 Month : From Jun 2019 to Jul 2019
By Sarah Chaney
Orders for long-lasting goods declined in May, reflecting a drop in civilian aircraft orders that masked underlying strength in capital goods.
Overall orders for durable goods, manufactured products intended to last at least three years, fell 1.3% in May from the prior month, the Commerce Department said Wednesday.
Much of the drop owed to the volatile civilian aircraft and spares component, which likely reflected seasonal noise: Jetliner sales are traditionally light ahead of the biennial air shows in Paris and Farnborough, England.
Boeing Co. booked no jetliner sales last month, contributing to the weakness in aircraft orders. The aerospace giant reported four orders for 737 MAX jets in April.
When excluding the transportation category, orders grew at a 0.3% pace.
An underlying business-investment gauge, new orders for nondefense capital goods excluding aircraft, increased 0.4% from April. Part of the rise in capital spending could reflect payback from April, when companies pulled back sharply on investment.
Though Wednesday's report is broadly positive, other measures of U.S. manufacturing have shown cooling after a robust 2018. The Institute for Supply Management said its measure of factory-sector activity slowed in May. Other Federal Reserve data show manufacturing output has declined since the end of last year.
Global economic growth has slowed, as trade tensions between the U.S. and its global partners heightened and central banks around the world tightened financial conditions. These factors could be damping demand for U.S.-made products.
--Doug Cameron contributed to this article.
Write to Sarah Chaney at firstname.lastname@example.org
(END) Dow Jones Newswires
June 26, 2019 11:19 ET (15:19 GMT)
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