MNI DATA ANALYSIS: US May Durable Orders Fall 0.6%>

--Ex-Transportation Orders -0.3%; Transportation Orders -1.0%

--Nondefense Cap Goods Ex Aircraft New Orders -0.2%, Shipments -0.1%

By Kevin Kastner and Holly Stokes

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

0.6% in May, a smaller drop than the 0.8% decrease expected by analysts 

in an MNI survey and following a large upward revision to the decline in 

the previous month, data released Wednesday by the Commerce Department 

showed. 

     The main driver of the May decline was a 1.0% drop in 

transportation orders. However, there was underlying weakness as new 

orders excluding transportation orders posted a surprise 0.3% decrease 

on declines in almost every component. Analysts had expected this 

component to rise 0.4%, continuing a string of gains back to February. 

--NONDEFENSE AIRCRAFT ORDERS, VEHICLE DROP

     Nondefense aircraft and parts new orders fell 7.0% in May 

following a 30.3% decline in the previous month. In addition, motor 

vehicles and parts orders declined 4.2%, pulling the transportation 

component lower.

     Those declines were offset by a 21.1% jump in defense orders and a 

20.0% rise in transportation orders excluding motor vehicles and 

aircraft, according to an MNI calculation. 

     Nondefense capital goods new orders fell 2.0%, and were still down 

0.2% excluding a drop in civilian aircraft orders following a 2.3% gain 

in April. 

--SHIPMENTS DOWN, INVENTORIES UP

     Durable goods shipments fell 0.1% in May due to a drop in 

transportation, but nondefense capital goods shipments were up 3.0%. 

Nondefense capital goods orders ex. aircraft were down 0.1% after a 1.0% 

gain in the previous month, a similar pattern to new orders. 

     Durable goods inventories rose 0.3% in the month, while unfilled 

orders posted a 0.5% increase.  

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

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