Factory orders declined 0.3% in June following 1.1% decrease in May

Factory Orders: New orders for manufactured goods decreased 0.3% in June after stepping down 1.1% in May. Meanwhile, new orders for manufactured goods rose 5.8% over the year. When excluding transportation, new orders declined 0.4% over the month but climbed 6.4% year-over-year in June. Orders for durable goods moved up 0.5%, following a 4.0% fall in May. Year to date, durable goods orders advanced 6.8%. Meanwhile, nondurable goods orders grew 4.8% over the year.

In June, the largest monthly decline occurred in mining, oil field and gas machinery, which plummeted 27.2% after jumping 11.0% in May. On the other hand, the largest gain occurred in defense search and navigation equipment, which rose 10.9% after falling 6.4% the prior month. The largest over-the-year changes occurred in mining, oil field and gas machinery (up 39.6%) and nondefense aircraft and parts (down 24.4%). 

Factory shipments ticked down 0.2% in June, after rising 1.6% in May. Shipments grew 6.5% over the year. Shipments excluding transportation stepped down 0.3% in June, following a 1.6% rise the previous month. Shipments for durable goods moved up 0.8%, following a 1.1% uptick in May, and rose 8.2% year to date. Meanwhile, nondurable goods decreased 1.2%, after advancing 2.2% the prior month, and rose 4.8% year to date. 

Unfilled orders for all manufacturing industries moved up 0.6% in June after rising 0.7% in May. Unfilled orders over the year jumped 8.3%. Inventories edged up 0.1% month-over-month and increased 1.9% year-over-year. The inventories-to-shipments ratio ticked up from 1.47 in May to 1.48 in June. The unfilled orders-to-shipments ratio for durable goods moved down from 6.90 in May to 6.86 in June.