Durable Goods Charts Seven Ways

By: Mike Shedlock | Fri, Jun 5, 2015
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Reader Tim Wallace sent a series of four charts on durable goods components. Each chart compares April of this year to April in prior years.


Durable Goods Shipments

Durable Goods Shipments
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This is the first time since 2008 that April year-over-year shipments are down.


Durable Goods New Orders

Durable Goods New Orders
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This is the first time since 2008 that year-over-year new orders in April declined. New orders rose above the pre-recession high but are now slightly below the 2007 high.


Durable Goods Unfilled Orders

Durable Goods Unfilled Orders
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Unfilled orders keep climbing. They are at a record high.


Durable Goods Inventory

Durable Goods Inventory
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Durable goods inventory is near a record high.

The above charts show nominal prices, not adjusted for inflation. Adjusted for inflation, shipments and new orders are well below pre-recession levels.

Over time, shipments and orders should match unless there are cancellations.

Unfilled orders are a reflection on aircraft orders that have a very long lead time and are subject to cancellation. Here is a chart I created in Fred that explains unfilled orders.


Unfilled Orders Breakdown

Unfilled Orders Breakdown
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Blue - Unfilled Orders Total
Green - Unfilled Transportation Orders
Red - Unfilled Orders Excluding Transportation

Unfilled orders except for transportation are meandering along.

New orders is the primary story.

To weed out the possibility that April of 2015 was some sort of outlier, let's look at some seasonally adjusted growth charts.


Durable Goods New Orders Percent Change From Year Ago

Durable Goods New Orders Percent Change From Year Ago
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Durable Goods New Orders Excluding Transportation Percent Change From Year Ago

Durable Goods New Orders Excluding Transportation Percent Change From Year Ago
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Durable goods orders are a volatile series, in large part due to huge transportation orders but conditions have been weak ever since November of 2014.


Durable Goods Growth From Year Ago


Durable Goods Growth From Year Ago Excluding Transportation

Excluding transportation, the numbers look better. Yet even excluding transportation, year-over-year new orders have been very weak all year.

 


 

Mike Shedlock

Author: Mike Shedlock

Mike Shedlock / Mish
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Mike Shedlock

Michael "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Visit http://www.sitkapacific.com/ to learn more about wealth management for investors seeking strong performance with low volatility.

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