St. Paul, MN (August 5, 2020) –New orders for key U.S.-made capital goods increased by the most in nearly two years in June and shipments accelerated, according to the U.S. Census Bureau.
New orders for manufactured durable goods in June increased $14 billion or 7.3 percent to $206.9 billion, the U.S. Census Bureau announced today. This increase, up two consecutive months, followed a 15.1 percent May increase. Excluding transportation, new orders increased 3.3 percent. Excluding defense, new orders increased 9.2 percent. Transportation equipment, also up two consecutive months, led the increase, $9.2 billion or 20.0 percent to $55.3 billion.
Shipments of manufactured durable goods in June, up two consecutive months, increased $29.4 billion or 14.9 percent to $227.1 billion. This followed a 4.2 percent May increase. Transportation equipment, also up two consecutive months, led the increase, $24.2 billion or 51.9 percent to $70.9 billion.
The improvement in manufacturing reported by the Commerce Department last week, was driven by pent-up demand following the reopening of businesses.
Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, jumped 3.3% last month, the Commerce Department said. That was the biggest increase in these so-called core capital goods orders since July 2018 and followed a 1.6% rise in May.
Orders last month were boosted by demand for machinery, fabricated metals and primary metals.
Orders for electrical equipment, appliances and components increased 1.2%, likely driven by workers setting up home offices.
Shipments of core capital goods surged 3.4% last month, the biggest gain since November 2013. Core capital goods shipments are used to calculate equipment spending in the government’s gross domestic product measurement.
U.S. manufacturing business conditions continued to improve in June, with several new reports released in July pointing to a steady climb back from historic losses triggered by the global pandemic.
Matsuura Machinery USA, Inc., located in St. Paul, MN is the U.S. subsidiary of Matsuura Machinery Corporation in Japan. Matsuura, an innovator in the design, development and manufacture of high-precision manufacturing solutions for more than 80 years, has been the forerunner in designing pioneering technology and manufacturing solutions to a variety of industries around the globe. Matsuura Machinery USA, Inc. delivers unmatched excellence in 5-axis, vertical, horizontal, linear motor, multi-tasking CNC machine tools and machines with a powder bed metal AM platform with machining capability. Matsuura Machinery USA, Inc. provides the service, applications and technical field support that have always been the Matsuura standard for business.
For more information about Matsuura, please contact: [email protected] or visit: matsuurausa.com.