MNI DATA IMPACT:US May Durable Orders Down 1.3% On Aircraft>

--May New Orders Ex. Transportation Up 0.3%, First Rise Since January

By Kevin Kastner

     WASHINGTON (MNI) - May durable goods orders data fell more than 

expected in May, with aircraft orders off sharpy for the second straight 

month. The headline fell by 1.3%, compared with a 0.3% decline expected 

by a Bloomberg median and the 1.0% decline forecast by the MNI survey. 

     This follows a downward revision to the previous month's orders and 

suggest weakness for second quarter fixed investment. 

     However, excluding transportation, new orders were up 0.3% in the 

month, above the 0.1% gain expected in both the Bloomberg and MNI 

surveys and the first increase since January. There were gains in 

primary metals, machinery, computers and electronics products, and the 

miscellaneous category that offset declines in fabricated metals and 

electrical equipment. 

     Here are some of the key takeaways from the data released 

Wednesday: 

     - The durable goods orders decline was largely due to a 4.6% 

decrease in transportation orders, particularly a 28.2% drop in 

nondefense aircraft orders. There were no gross Boeing orders in the 

month and negative net orders, foreshadowing the decline in the 

government data. 

     - Durables shipments rose by 0.4% and inventories rose by 0.5%, but 

unfilled orders fell by 0.5%, the largest drop in nearly three years. 

     - Nondefense capital goods new orders were down 2.3% in May, but 

were up 0.4% excluding aircraft. Nondefense capital goods shipments were 

up 0.5% in the month, while shipments ex. aircraft were up 0.7%. 

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

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