Subscribe to our free, weekly email newsletter!


Department of Commerce reports durable goods orders are down 2.1 percent in June

By Jeff Berman, Group News Editor
July 27, 2011

At a time when economic momentum continues to fluctuate, new orders for durable goods showed in June did nothing to quell that notion, falling 2.1 percent—or $4.0 billion.

New orders have been down two of the last three months, said Commerce, with May’s 1.9 percent increase sandwiched in the middle.

June shipments of manufactured goods, which have been up in six of the last seven months, were up 0.5 percent—or $1.0 billion—to $196.0 billion. May shipments saw a 0.5 percent increase.

While economic growth is relatively shaky, the up and down nature of durable goods and new orders is fairly consistent with what is occurring in the freight transportation sector, which is seeing mostly flat growth compared to a year ago and now appears to be following more traditional seasonal patterns.

This was made clear in a recent research report by Jon Langenfeld, transportation analyst at Robert W. Baird.

“Following June’s seasonal strengthening, industry contacts and data points indicate July volumes have slowed, consistent with typical seasonal patterns,” wrote Langenfeld. “Commentary through 2Q earnings reporting has indicated expectation for a muted, compressed peak season but one that resembles a more ‘normal’ pickup beginning mid-3Q. Contacts indicate volume has seasonally slowed in July, trending in line with historical expectations.”

And as LM has previously reported, a good amount of growth stems from a very strong manufacturing sector, which has shown expansion for 25 straight months, according to the Institute for Supply Management.

“We are seeing steady growth for the most part,” a metals shipper said in a recent interview. “It is not great compared to what we have seen in the past, but it is clear that demand for goods is intact.”

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Transportation stakeholders reliant on North Carolina’s major seaports are welcoming news this week, which outlines plans to enhance the intermodal and cold chain network in the region.

The index ISM uses to measure non-manufacturing growth—known as the NMI—was 56.9 in February, which was 0.2 percent ahead of January and also 0.1 percent ahead of the 12-month average of 56.8. Economic activity in the non-manufacturing sector has grown for the last 61 months, according to ISM.

Non asset-based third-party logistics (3PL) services and logistics technology services provider Transplace said today that Brooks Bentz has joined the company in a newly-created role as president of Transplace Consulting in conjunction with the launch of the company’s new North American consulting services practice.

The advent of e-commerce continues to grow and gain increased traction over time. The many ways for consumers to order and purchase goods online continues to expand and leads to various subsequent byproducts of online purchases, including shopping through multiple channels, and delivery and payment options, among other things. These types of topics serve as the thesis in the second annual UPS Pulse of the Online Shopper Global Study issued this week by UPS and comScore Inc.

A major highlight of CEVA’s fourth quarter performance was its new business wins, which were up 14 percent for all of 2014, with Freight Management wins up 14 percent, and Ocean Freight and Air Freight wins up 30 percent and 14 percent, respectively, while Contract Logistics wins were up 2 percent.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA