MNI DATA ANALYSIS: US July Durable Orders Fall 1.7%>

--Ex-Transportation Orders +0.2%; Transportation Orders -5.3%

--Nondefense Cap Goods Ex Aircraft New Orders +1.4%, Shipments +0.9%

By Kevin Kastner, Shikha Dave, and Harrison Clarke

     WASHINGTON (MNI) - The value of U.S. durable goods new orders fell 

by 1.7% in July, a larger loss than the 1.3% fall expected by analysts 

in an MNI survey and following an downward revision to the increase in 

the previous month, data released Friday by the Commerce Department 

showed. 

     The main driver of the July decrease was a 5.3% decline in 

transportation orders. However, new orders excluding transportation 

orders posted a 0.2% increase despite losses in communications equipment 

new orders and the all other durables category. Analysts had expected 

this component to rise 0.5%. 

--NONDEFENSE AIRCRAFT ORDERS FALL, VEHICLES RISE

     Nondefense aircraft and parts new orders declined 35.4% in July 

following a 1.3% rise in the previous month, while defense aircraft 

orders fell 34.6%. 

     Motor vehicles and parts orders were up 3.5% in the month, 

providing some offset. Transportation orders excluding motor vehicles 

and aircraft were up 7.9%, according to an MNI calculation. 

     Nondefense capital goods new orders fell 4.6%, but were up 1.4% 

excluding an increase in civilian aircraft orders following a 0.6% rise 

in June. 

--SHIPMENTS DOWN, INVENTORIES UP

     Durable goods shipments fell 0.2% in July due to a decline in 

transportation, and nondefense capital goods shipments were also down 

4.2%. Nondefense capital goods shipments ex. aircraft were up 0.9% after 

a 0.9% rise in the previous month. 

     Durable goods inventories rose 1.3% in the month, while unfilled 

orders were flat.  

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDR$,MAUDS$,MT$$$$,M$U$$$]