Durable goods orders drop 3.6 percent in April, according to Department of Commerce

With freight volumes moderating in recent weeks and demand seeing a mild decline, the United States Department of Commerce reported today that new orders for manufactured durable goods in April dipped 3.6 percent—or $7.1 billion—to $189.9 billion.

By ·

With freight volumes moderating in recent weeks and demand seeing a mild decline, the United States Department of Commerce reported today that new orders for manufactured durable goods in April dipped 3.6 percent—or $7.1 billion—to $189.9 billion.

This marks the second time in the last three months that new orders have been down. March was up 4.4 percent.

April shipments of manufactured goods fell for the first time in five months, decreasing 1.0 percent—or $2.0 billion—to $194.9 million, according to Commerce. This followed a 3.1 percent gain in March.

The decreases in orders and shipments are consistent with what is happening with current freight trends to a large degree. Industry analysts point out that there was a downturn in freight demand from March to April even though overall freight levels are still showing growth.

And as LM has reported, a good amount of this growth stems from a very strong manufacturing sector, which has shown expansion for 23 straight months, according to the Institute for Supply Management.

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

This sentiment is being highlighted in recent earnings reports and advisories from myriad logistics and freight transportation service providers, too. These providers have been cautious about adding capacity until they see more consistent and steady signs of demand over a prolonged period.

Should oil and diesel prices continue to inch down, as has been the trend in recent weeks, it could serve as a driver for increased demand and orders.


About the Author

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. Contact Jeff Berman

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!

Latest Whitepaper
Outsourced Transportation Management
All the benefits of owning a fleet without the headache of managing it.
Download Today!
From the August 2017 Logistics Management Magazine Issue
Which carriers, third-party logistics providers, and North American ports have crossed the service excellence finish line ahead of their competitors? Our readers have cast their votes, and now it’s time to introduce this year’s winners of the coveted Quest for Quality Awards.
BMW Takes the Inland Road to Efficiency
Global Logistics: No Shortcuts to Security
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...
2017 Top 50 3PLs: Investment and Consolidation Maintain Traction
The trend set over the past few years for mergers and acquisitions has hardly subsided, and a fresh...

2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...