Factory Orders Fell 1.5% in June

Washington, DC, August 4, 2016—New orders for manufactured goods in June, down two consecutive months, decreased $6.9 billion or 1.5% to $447.4 billion, the U.S. Census Bureau reported.

This followed a 1.2% May decrease.

Shipments, up four consecutive months, increased $3.1 billion or 0.7% to $460.0 billion. This followed a 0.1% May increase.

Unfilled orders, down following three consecutive monthly increases, decreased $9.6 billion or 0.8% to $1,128.0 billion. This followed a virtually unchanged May increase. The unfilled orders-to-shipments ratio was 6.81, down from 6.89 in May.

Inventories, down thirteen of the last fourteen months, decreased $0.5 billion or 0.1% to $619.1 billion. This followed a 0.1% May decrease. The inventories-to-shipments ratio was 1.35, down from 1.36 in May.

New orders for manufactured durable goods in June, down two consecutive months, decreased $9.0 billion or 3.9% to $219.8 billion, up from the previously published 4.0% decrease. This followed a 2.9% May decrease.

Transportation equipment, also down two consecutive months, led the decrease, $8.5 billion or 10.5% to $72.1 billion.

New orders for manufactured nondurable goods increased $2.2 billion or 1.0% to $227.6 billion.

Shipments of manufactured durable goods in June, up two of the last three months, increased $1.0 billion or 0.4% to $232.4 billion, virtually unchanged from the previously published increase. This followed a 0.3% May decrease.

Transportation equipment, also up two of the last three months, drove the increase, $1.1 billion or 1.4% to $81.1 billion.

Shipments of manufactured nondurable goods, up four consecutive months, increased $2.2 billion or 1.0% to $227.6 billion. This followed a 0.6% May increase. Petroleum and coal products, also up four consecutive months, led the increase, $1.4 billion or 3.9% to $36.6 billion.

Unfilled orders for manufactured durable goods in June, down following three consecutive monthly increases, decreased $9.6 billion or 0.8% to $1,128.0 billion, up from the previously published 0.9% decrease. This followed a virtually unchanged May increase.

Transportation equipment, also down following three consecutive monthly increases, led the decrease, $9.0 billion or 1.2% to $774.8 billion.

Inventories of manufactured durable goods in June, down eleven of the last twelve months, decreased $1.0 billion or 0.3% to $381.3 billion, down from the previously published 0.2% decrease. This followed a 0.4 percent May decrease.

Transportation equipment, down five consecutive months, drove the decrease, $1.3 billion or 1.0% to $122.9 billion.

Inventories of manufactured nondurable goods, up four consecutive months, increased $0.5 billion or 0.2% to $237.9 billion. This followed a 0.3% May increase. Chemical products, up two consecutive months, led the increase, $0.3 billion or 0.4% to $81.4 billion.

By stage of fabrication, June materials and supplies decreased 0.1% in durable goods and decreased 0.5% in nondurable goods. Work in process decreased 1.6% in durable goods and increased 1.2% in nondurable goods. Finished goods increased 1.5% in durable goods and increased 0.3% in nondurable goods.