The only thing flying high in June’s Durable Goods orders was transportation: aircraft and autos. New orders for manufactured durable goods in June increased $9.9 billion, or 4.2%, to $244.5 billion, according to the U.S. Census Bureau. While that sounds extremely positive, if you take out transportation durable goods, orders were flat.
Transportation equipment, aircraft and autos led the increase, with the largest gains by the nondefense aircraft and parts industry, which increased $6.5 billion.
Shipments of manufactured durable goods in June, down two of the last three months, decreased slightly to $229.8 billion, following a 1.3% May increase. Machinery, also down two of the last three months, drove the decrease, noted the report.
Unfilled orders for manufactured durable goods in June, up four of the last five months, increased $21.4 billion, or 2.1%, to $1029.4 billion, following a 1.1% increase in May. Transportation equipment again led the increase, $18.0 billion or 2.9% to $637.4 billion.
Inventories of manufactured durable goods in June, up two of the last three months, increased $0.7 billion, or 0.2%, to $378.0 billion. Transportation equipment, up 13 of the last 14 months, again led the increase, $0.6 billion, or 0.5%, to $116.6 billion.
The automotive industry is showing strong sales industry-wide. General Motors reported U.S. sales rose by 8.7% in the first half of 2013, putting that company in second place in its attempt to get closer to sales leader Toyota. Toyota reported June 2013 sales results of 195,235 units, an increase of 14% over June 2012, and first-half 2013 sales of 1,108.791 units.
Ford Motor Co.’s June sales were up 13% compared to June 2012, and overall Ford saw its best sales since June 2006, according to Ford. Trucks were the best sellers, up 20%, followed by cars (up 12%) and SUVs (up 8%).