Durable Goods Orders Off in May

Washington, DC, June 27, 2007--Orders for durable goods in May declined 2.8 percent, according to a report from the Commerce Department. It was the first drop in four months, after a revised 1.1 percent gain in April.

Economists forecast a 1 percent drop during the month.

Excluding transportation equipment, durable orders dropped 1 percent after rising 2.5 percent.

Economists forecast durable orders, excluding transportation equipment, to rise 0.2 percent.

Non-defense capital goods orders excluding aircraft dropped 3 percent, the most since January, after increasing 2.3 percent in April.

Orders for commercial aircraft slumped 23 percent in May after dropping 11 percent in April. Demand for machinery fell 1.6 percent and bookings for metals dropped 3.6 percent.

Orders excluding of military equipment fell 3.2 percent last month after rising 1.2 percent in April. Inventories of all durable goods rose 0.2 percent. Manufacturers had a 1.46 month's supply of durable goods on hand at the current sales pace in May, the same as in April.