New orders for manufactured durable goods in June decreased $4.1 billion or 2.5 percent to $158.6 billion, the U.S. Census Bureau announced today. But in a positive sign for the construction equipment industry, new orders increased 1.1 percent when excluding aircraft orders.
This decrease followed two consecutive monthly increases, including a 1.3 percent rise in May, the Census report said. Shipments of manufactured durable goods in June continued down for the eleventh consecutive month, falling $300 million or 0.2 percent to $168.3 billion.
Analysts said a drop in inventories of manufactured durable goods in June, which have fallen for six consecutive months, could be a positive sign for the economy because falling inventories mean new orders will spur an increase in manufacturing.
Economists have been watching reports on durable goods for signs that the manufacturing sector could be rebounding from the recession, which has cost the sector 1.9 million jobs since 2007.
One analyst said the June report could indicate a rebound.
"Even taking into account the dip in June, durable goods orders are firmly in positive territory
which suggests a welcome momentum shift," Wells Fargo economist Tim Quinlan wrote in a note to clients, according to the Washington Post.