U.S. Durable Goods Orders Fall 9.3% in June Amid Transportation Decline

U.S. durable goods orders fell by 9.3% in June, marking the largest monthly decline since 2020, but the drop was less severe than economists had predicted. This decline largely reflected a sharp 22.4% decrease in transportation equipment orders, particularly driven by a pullback in aircraft orders following a surge in May, which included a significant number of airplane purchases for one major manufacturer. Excluding transportation, durable goods orders actually rose 0.2% in June, representing the third consecutive monthly gain and indicating resilience in other sectors such as computers, electronics, and fabricated metals. Year-over-year, new orders for durable goods remain up 10.9%, with core durable goods (excluding transportation) up 2.2% from a year ago, suggesting ongoing underlying strength outside the transportation sector. The data points to a mixed outlook, with transportation orders showing volatility due to aircraft demand fluctuations and possible tariff impacts, while other sectors continue to show modest growth. Overall, the durable goods report indicates some economic uncertainty but also areas of continued investment and confidence.