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

Carload volumes were up 7.6 percent at 299,256, topping the week ending January 12 at 290,607 and the week ending July 5 at 270,731.

U.S. companies made only marginal improvements in their ability to collect from customers and pay suppliers in 2013, while showing no improvement in how well they managed inventory, according to the 16th annual working capital survey from REL a division of the Hackett Group, Inc.

Study suggests solutions for filling the talent gap, including the development of robust ties with the education system.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement (NAFTA) partners Canada and Mexico increased 5.4 percent from May 2013 to May 2014 at $103.9 billion.

With an eye on making transportation of crude oil by rail (CBR) and ethanol safer following various tragic accidents over the last year, the United States Department of Transportation yesterday released details regarding its rulemaking proposal designed to improve how large quantities of flammable materials by rail can be moved in a safer manner.

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA