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Orders for Durable Goods Remain Durable Despite Rising Prices

June 27, 2022
Demand for manufactured goods remains strong despite record-high inflation, according to the latest figures from the Census Bureau

Demand for manufactured industrial goods remains strong despite record-high inflation—at least, as of May. On Monday, June 27, The U.S. Census Bureau released its regular report on durable goods orders for May 2022, showing that new orders for durable goods increased that month by $1.9 billion, or 0.7%, up from a 0.4% increase in April. In total, manufacturers received $267.2 billion in orders in May.

The data also show that shipments, unfilled orders, inventories and capital goods orders all grew alongside new orders of durable goods.

The results indicate that demand persists despite record-high inflation: Economists polled by AFP had predicted a much weaker report for the month.

Transportation led the growth in new orders, notching 0.8 point growth from April to May, but other industries also performed well: Excluding transportation equipment from the numbers entirely, other durable goods businesses would have still managed 0.7 point growth.

In transportation equipment, which saw a total of $87.5 million in orders, demand for military aircraft and motor vehicles made up for lagging civilian aircraft orders. Defense aircraft orders grew by 8.1 points while motor vehicles orders grew by half a point, offsetting the 1.1 fall in other planes and parts.

Outside transportation equipment, growth in primary metals orders was strongest with an increase of 3.1 points. Machinery orders increased by 1.1 points, and fabricated metal product orders were flat from April. New orders of computers fell by 0.7 points, but elsewhere in electronics, communications equipment orders rose 2.0 points.

About the Author

Ryan Secard | Associate Editor

 

Focus: Workforce and labor issues; machining and foundry management
LinkedIn: https://www.linkedin.com/in/ryan-secard/

Associate Editor Ryan Secard covers topics relevant to the manufacturing workforce, including recruitment, safety, labor organizations, and the skills gap. Ryan has written IndustryWeek's Salary Survey annually since 2021 and has coordinated its Talent Advisory Board since September 2023.

Ryan got started at IndustryWeek in August 2019 as an editorial intern and was hired as a news editor in 2020 before his 2023 promotion to associate editor, talent. He has a Bachelor of Arts in English from the College of Wooster.

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