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FOR IMMEDIATE RELEASE WEDNESDAY, JUNE 24, 2009, AT 8:30 A.M. EDT Chris Savage or Jessica Young Manufacturing and Construction Division (301) 763-4832

M3-1 (09)-05 CB09-98

Advance Report on Durable Goods Manufacturers’ Shipments, Inventories and Orders May 2009 New Orders

Inventories

New orders for manufactured durable goods in May increased $2.8 billion or 1.8 percent to $163.9 billion, the U.S. Census Bureau announced today. This was the third increase in the last four months and followed a 1.8 percent April increase. Excluding transportation, new orders increased 1.1 percent. Excluding defense, new orders also increased 1.4 percent.

Inventories of manufactured durable goods in May, down five consecutive months, decreased $2.5 billion or 0.8 percent to $323.3 billion. This followed a 1.1 percent April decrease.

Machinery, up three of the last four months, had the largest increase, $1.6 billion or 7.7 percent to $22.5 billion. Shipments Shipments of manufactured durable goods in May, down ten consecutive months, decreased $3.6 billion or 2.1 percent to $169.9 billion. This was the longest streak of consecutive monthly decreases since the series was first published on a NAICS basis in 1992 and followed a 0.5 percent April decrease.

Primary metals, down eight consecutive months, had the largest decrease, $0.9 billion or 3.0 percent to $27.1 billion. Capital Goods Nondefense new orders for capital goods in May increased $4.9 billion or 10.0 percent to $53.8 billion. Shipments decreased $0.2 billion or 0.3 percent to $56.3 billion. Unfilled orders decreased $2.5 billion or 0.6 percent to $429.7 billion. Inventories decreased $0.5 billion or 0.3 percent to $142.1 billion.

Transportation equipment, down two consecutive months, had the largest decrease, $2.7 billion or 6.0 percent to $42.2 billion.

Defense new orders for capital goods in May increased $0.8 billion or 7.4 percent to $12.0 billion. Shipments increased $0.1 billion or 1.0 percent to $10.4 billion. Unfilled orders increased $1.7 billion or 1.2 percent to $144.4 billion. Inventories decreased $0.1 billion or 0.4 percent to $20.2 billion.

Unfilled Orders

Revised April Data

Unfilled orders for manufactured durable goods in May, down eight consecutive months, decreased $2.0 billion or 0.3 percent to $747.5 billion. This followed a 1.1 percent April decrease.

Revised seasonally adjusted April figures for all manufacturing industries were: new orders, $344.7 billion (revised from $344.4 billion); shipments, $357.1 billion (revised from $357.3 billion); unfilled orders, $749.5 billion (revised from $748.7 billion); and total inventories, $516.5 billion (revised from $517.6 billion).

Machinery, down eight consecutive months, had the largest decrease, $0.8 billion or 0.9 percent to $87.7 billion.

Figures in text are in seasonally adjusted current dollars. Figures on new and unfilled orders exclude data for semiconductor manufacturing. For data, call (301) 763-4673 or go to . Revised and more detailed estimates, plus nondurable goods data, will be published on July 2, 2009, at 10:00 a.m. EDT. The advance report on durable goods for June is scheduled for release on July 29, 2009, at 8:30 a.m. EDT. See back page for survey description.

2

Table 1. Durable Goods Manufacturers' Shipments and New Orders

[Millions of Dollars]

Monthly

Seasonally Adjusted Percent Change

Not Seasonally Adjusted Monthly

1

Year to Date

Item May 2009 2

Apr 2009

May 2009 2

Apr 2009

Apr May 2

Mar Apr r

Shipments………………………….. 4 New Orders …………………………

169,885 163,920

173,469 161,098

174,417 158,279

-2.1 1.8

-0.5 1.8

Excluding transportation: Shipments………………………….. 4 New Orders …………………………

127,666 121,733

128,546 120,374

129,366 119,932

-0.7 1.1

Excluding defense: Shipments………………………….. 4 New Orders …………………………

156,454 148,948

160,104 146,921

161,209 146,065

Manufacturing with unfilled orders: Shipments………………………….. 4 New Orders …………………………

122,277 120,291

124,228 116,023

Primary metals: Shipments………………………….. New Orders…………………………

12,105 11,727

Fabricated metal products: Shipments………………………….. New Orders…………………………

Feb Mar

-1.9 -2.2

169,855 160,867

-0.6 0.4

-2.9 -2.8

-2.3 1.4

-0.7 0.6

126,704 113,457

-1.6 3.7

12,492 11,701

13,111 11,641

23,463 22,670

23,856 23,253

Machinery: Shipments………………………….. New Orders…………………………

23,296 22,465

Computers and electronic products: Shipments………………………….. 4 New Orders …………………………

Percent Change 09/08

May 2008

2009

170,883 154,329

215,193 213,150

850,007 1,053,058 784,272 1,072,012

-19.3 -26.8

127,275 121,423

127,323 118,563

161,351 157,800

633,715 595,982

781,966 778,145

-19.0 -23.4

-2.1 -2.4

156,472 148,220

158,003 142,497

203,217 203,004

787,211 997,778 722,696 1,014,258

-21.1 -28.7

-2.0 2.3

-1.7 -2.1

122,206 117,016

120,842 109,641

154,443 156,974

612,002 565,175

749,339 795,088

-18.3 -28.9

-3.1 0.2

-4.7 0.5

-7.5 -9.2

12,591 12,166

12,837 12,073

23,487 22,781

65,780 61,395

110,676 113,384

-40.6 -45.9

24,455 22,249

-1.6 -2.5

-2.4 4.5

-2.1 -3.0

23,954 23,921

23,804 23,371

28,841 29,618

118,582 114,475

136,117 141,224

-12.9 -18.9

22,868 20,857

23,710 20,730

1.9 7.7

-3.6 0.6

-3.5 -7.3

23,451 22,297

23,525 21,896

29,615 30,739

117,979 108,512

145,992 156,894

-19.2 -30.8

28,360 24,855

28,565 24,314

27,616 25,060

-0.7 2.2

3.4 -3.0

-1.0 1.5

26,425 22,206

26,936 21,212

30,431 25,172

134,077 115,118

156,156 131,498

-14.1 -12.5

Computers and related products: Shipments………………………….. New Orders…………………………

4,404 4,410

4,333 4,030

4,395 4,316

1.6 9.4

-1.4 -6.6

-2.8 -4.6

3,849 3,855

3,623 3,320

4,657 4,862

20,190 19,413

24,669 24,563

-18.2 -21.0

Communications equipment: Shipments………………………….. New Orders…………………………

4,525 4,960

4,685 5,002

4,788 4,663

-3.4 -0.8

-2.2 7.3

0.0 -2.1

4,250 4,514

3,907 4,318

5,423 5,445

21,607 23,055

26,606 28,024

-18.8 -17.7

Semiconductors: Shipments………………………….. 4 New Orders …………………………

3,979 (NA)

4,166 (NA)

2,891 (NA)

-4.5 (NA)

44.1 (NA)

-3.7 (NA)

3,798 (NA)

5,353 (NA)

4,574 (NA)

18,908 (NA)

26,795 (NA)

-29.4 (NA)

Electrical equipment, appliances, and components: Shipments………………………….. New Orders…………………………

8,358 8,092

8,616 8,178

8,486 8,182

-3.0 -1.1

1.5 0.0

-2.9 0.1

8,376 8,240

8,454 8,143

10,926 11,379

41,483 40,688

52,203 54,146

-20.5 -24.9

Transportation equipment: Shipments………………………….. New Orders…………………………

42,219 42,187

44,923 40,724

45,051 38,347

-6.0 3.6

-0.3 6.2

1.1 -0.1

42,580 39,444

43,560 35,766

53,842 55,350

216,292 188,290

271,092 293,867

-20.2 -35.9

Motor vehicles and parts: Shipments………………………….. New Orders…………………………

22,912 22,764

25,025 24,767

24,545 24,465

-8.4 -8.1

2.0 1.2

-0.8 -0.7

23,301 22,920

24,957 24,873

34,012 33,712

122,175 121,222

177,587 176,656

-31.2 -31.4

Nondefense aircraft and parts: Shipments………………………….. New Orders…………………………

7,244 6,684

7,765 3,976

7,963 4,034

-6.7 68.1

-2.5 -1.4

0.4 7.5

7,246 5,208

7,087 1,007

8,196 11,181

37,609 16,805

40,396 62,585

-6.9 -73.1

Defense aircraft and parts: Shipments………………………….. New Orders…………………………

5,647 5,328

5,302 5,418

5,527 5,355

6.5 -1.7

-4.1 1.2

7.1 6.6

5,550 4,512

4,968 4,650

4,444 4,626

24,952 24,401

20,680 22,461

20.7 8.6

All other durable goods: Shipments………………………….. New Orders…………………………

32,084 31,924

32,149 32,071

31,988 32,070

-0.2 -0.5

0.5 0.0

-2.9 -1.1

32,478 32,593

31,767 31,868

38,051 38,111

155,814 155,794

180,822 180,999

-13.8 -13.9

Capital goods: Shipments………………………….. New Orders…………………………

66,724 65,866

66,803 60,154

68,085 59,150

-0.1 9.5

-1.9 1.7

-1.1 -2.6

65,300 60,944

64,143 54,272

76,346 78,580

327,859 290,353

373,812 409,645

-12.3 -29.1

Nondefense capital goods: Shipments………………………….. New Orders…………………………

56,348 53,831

56,530 48,944

58,067 50,424

-0.3 10.0

-2.6 -2.9

-0.9 -1.0

54,786 50,684

54,156 45,107

67,187 71,011

279,072 242,011

330,623 365,203

-15.6 -33.7

Excluding aircraft: Shipments……………………… New Orders……………………..

52,447 50,858

52,306 48,537

53,780 49,989

0.3 4.8

-2.7 -2.9

-1.7 -1.4

50,702 48,868

50,327 47,146

62,463 63,532

258,998 245,275

308,783 322,935

-16.1 -24.0

Defense capital goods: Shipments………………………….. New Orders…………………………

10,376 12,035

10,273 11,210

10,018 8,726

1.0 7.4

2.5 28.5

-2.3 -11.1

10,514 10,260

9,987 9,165

9,159 7,569

48,787 48,342

43,189 44,442

13.0 8.8

r

Mar 2009

r

2008

DURABLE GOODS Total:

3

NA Not Available

r

Revised

1

Shipments and new orders are the totals for the period and are adjusted for trading-day and calendar-month variations; unfilled orders and total inventories are as of the end of the period and are not adjusted for trading-day or calendar-month variations.

2

Based on advance sample. Estimates of manufacturers' shipments, inventories, and orders are subject to survey error and revision. One major component of survey error is nonsampling error, which includes errors of coverage, response and nonreporting. Since the survey panel is not a probability sample, estimates of sampling error cannot be calculated. Further details on survey design, methodology, and data limitations are contained in our most recent annual benchmark publication, Current Industrial Reports: M3-3(07), "Manufacturers' Shipments, Inventories, and Orders: 2004-2007."

3

The Capital Goods Industries include Nondefense : small arms and ordnance; farm machinery and equipment; construction machinery; mining, oil, and gas field machinery; industrial machinery; vending, laundry, and other machinery; photographic equipment; metalworking machinery; turbines and generators; other power transmission equipment; pumps and compressors; material handling equipment; all other machinery; electronic computers; computer storage devices; other computer peripheral equipment; communications equipment; search and navigation equipment; electromedical, measuring, and control instruments; electrical equipment; other electrical equipment, appliances, and components; heavy duty trucks; aircraft; railroad rolling stock; ships and boats; office and institutional furniture; and medical equipment and supplies. Defense Capital Goods include : small arms and ordnance, communications equipment, aircraft; missiles, space vehicles, and parts, ships and boats, and search and navigation equipment.

4

Data on new and unfilled orders are not available for the semiconductor industry. Estimates and percent changes for new orders and unfilled orders exclude semiconductor industry data. Inventories for semiconductor industry data are included in computers and electronic products and total durable goods industries, but are not shown separately.

3

Table 2. Durable Goods Manufacturers' Unfilled Orders and Total Inventories

[Millions of Dollars]

Monthly Item

May 2009 2

Apr 2009 r

Seasonally Adjusted Percent Change Mar 2009

Apr May 2

Mar Apr r

Not Seasonally Adjusted Monthly Feb Mar

May 2009 2

Apr 2009 r

May 2008

1

Percent Change 2009/ 2008

DURABLE GOODS Total: Unfilled Orders4……………………. Total Inventories…………………..

747,501 323,251

749,487 325,725

757,692 329,460

-0.3 -0.8

-1.1 -1.1

-1.7 -1.7

751,926 324,457

757,116 326,530

817,565 333,452

-8.0 -2.7

Excluding transportation: Unfilled Orders4……………………. Total Inventories…………………..

308,121 230,074

310,075 232,234

314,081 236,252

-0.6 -0.9

-1.3 -1.7

-2.0 -2.0

312,093 230,476

314,147 232,480

357,995 246,167

-12.8 -6.4

Excluding defense: Unfilled Orders4……………………. Total Inventories…………………..

587,119 297,005

590,646 299,450

599,663 303,450

-0.6 -0.8

-1.5 -1.3

-2.0 -1.9

590,590 298,081

595,044 300,155

663,782 308,799

-11.0 -3.5

Manufacturing with unfilled orders: Unfilled Orders4……………………. Total Inventories…………………..

747,501 260,266

749,487 262,181

757,692 264,930

-0.3 -0.7

-1.1 -1.0

-1.7 -1.9

751,926 261,478

757,116 262,839

817,565 267,117

-8.0 -2.1

Primary metals: Unfilled Orders……………………. Total Inventories…………………..

13,596 27,116

13,974 27,968

14,765 29,012

-2.7 -3.0

-5.4 -3.6

-9.1 -3.9

13,942 26,932

14,367 27,690

29,971 33,112

-53.5 -18.7

Fabricated metal products: Unfilled Orders……………………. Total Inventories…………………..

50,970 39,910

51,763 40,441

52,366 41,408

-1.5 -1.3

-1.2 -2.3

-4.0 -2.9

52,628 39,809

52,661 40,518

64,526 43,354

-18.4 -8.2

Machinery: Unfilled Orders……………………. Total Inventories…………………..

87,661 52,098

88,492 52,454

90,503 53,161

-0.9 -0.7

-2.2 -1.3

-3.2 -2.3

88,444 52,291

89,598 52,807

101,289 54,053

-12.7 -3.3

123,905 46,175

123,431 46,077

123,516 46,298

0.4 0.2

-0.1 -0.5

0.3 -1.5

124,528 46,523

124,949 45,955

123,904 46,892

0.5 -0.8

Computers and related products: Unfilled Orders……………………. Total Inventories…………………..

3,313 4,623

3,307 4,675

3,610 4,694

0.2 -1.1

-8.4 -0.4

-2.1 -0.1

3,313 4,770

3,307 4,666

3,611 5,351

-8.3 -10.9

Communications equipment: Unfilled Orders……………………. Total Inventories…………………..

37,725 10,524

37,290 10,332

36,973 10,295

1.2 1.9

0.9 0.4

-0.3 -0.1

38,202 10,600

37,938 10,328

37,835 9,950

1.0 6.5

(NA) (NA)

(NA) (NA)

(NA) (NA)

(NA) (NA)

(NA) (NA)

(NA) (NA)

(NA) (NA)

(NA) (NA)

(NA) (NA)

(NA) (NA)

Electrical equipment, appliances, and components: Unfilled Orders……………………. Total Inventories…………………..

20,491 13,323

20,757 13,449

21,195 13,687

-1.3 -0.9

-2.1 -1.7

-1.4 -1.2

20,804 13,487

20,940 13,650

25,007 15,375

-16.8 -12.3

Transportation equipment: Unfilled Orders……………………. Total Inventories…………………..

439,380 93,177

439,412 93,491

443,611 93,208

0.0 -0.3

-0.9 0.3

-1.5 -1.0

439,833 93,981

442,969 94,050

459,570 87,285

-4.3 7.7

Motor vehicles and parts: Unfilled Orders……………………. Total Inventories…………………..

14,696 18,984

14,844 19,328

15,102 19,783

-1.0 -1.8

-1.7 -2.3

-0.5 -3.3

14,696 19,046

15,077 19,431

17,634 23,850

-16.7 -20.1

Nondefense Aircraft and parts: Unfilled Orders……………………. Total Inventories…………………..

287,567 47,040

288,127 47,038

291,916 46,655

-0.2 0.0

-1.3 0.8

-1.3 -0.7

287,306 47,566

289,344 47,311

302,804 37,643

-5.1 26.4

Defense Aircraft and parts: Unfilled Orders……………………. Total Inventories…………………..

47,250 15,487

47,569 15,543

47,453 15,205

-0.7 -0.4

0.2 2.2

-0.4 1.4

47,676 15,586

48,714 15,571

45,083 14,316

5.8 8.9

All other durable goods: Unfilled Orders……………………. Total Inventories…………………..

11,498 51,452

11,658 51,845

11,736 52,686

-1.4 -0.8

-0.7 -1.6

0.7 -0.4

11,747 51,434

11,632 51,860

13,298 53,381

-11.7 -3.6

Capital goods: 3 Unfilled Orders……………………. Total Inventories…………………..

574,177 162,313

575,035 162,889

581,684 163,184

-0.1 -0.4

-1.1 -0.2

-1.5 -1.1

576,429 163,332

580,785 163,405

611,290 156,345

-5.7 4.5

Nondefense capital goods: Unfilled Orders……………………. Total Inventories…………………..

429,741 142,105

432,258 142,602

439,844 143,109

-0.6 -0.3

-1.7 -0.4

-1.7 -1.4

431,209 143,093

435,311 143,046

473,395 136,966

-8.9 4.5

Excluding aircraft: Unfilled Orders……………….. Total Inventories……………….

177,392 104,630

178,981 105,058

182,750 106,048

-0.9 -0.4

-2.1 -0.9

-2.0 -1.6

179,459 105,270

181,293 105,335

202,936 107,777

-11.6 -2.3

Defense capital goods: Unfilled Orders……………………. Total Inventories…………………..

144,436 20,208

142,777 20,287

141,840 20,075

1.2 -0.4

0.7 1.1

-0.9 0.9

145,220 20,239

145,474 20,359

137,895 19,379

5.3 4.4

Computers and electronic products: Unfilled Orders4……………………. Total Inventories…………………..

Semiconductors: Unfilled Orders4……………………. Total Inventories 4…………………..

See footnotes at end of Table 1

4

Survey Description This report is compiled from results of the U.S. Census Bureau’s Manufacturers’ Shipments, Inventories, and Orders (M3) survey. This survey provides statistics on manufacturers' value of shipments, new orders (net of cancellations), end-of-month order backlog (unfilled orders), end-of-month total inventory (at current cost or market value), and inventories by stage of fabrication (materials and supplies, work-in-process, and finished goods). The M3 includes approximately 4,300 reporting units. Units may be divisions of diversified large companies, large homogenous companies, or single-unit manufacturers in 89 industry categories. Due to the small monthly sample, these 89 categories have been combined into 59 publication levels. The survey methodology assumes that the month-tomonth changes of the total operations of those companies in the monthly survey effectively represent the month-tomonth movements of all establishments that make up the category. The current coverage levels in the survey show that reported data in the monthly survey represent approximately 61 percent of the shipments estimates at the total manufacturing level. Data published represent manufacturing in a calendar month. The data collection is based on a voluntary survey authorized by Title 13 of the United States Code. The data presented in this release are based on data obtained from a panel of 4,300 reporting units and provide an indication of the activity within the manufacturing sector. The results differ from what would be obtained from a complete enumeration of all manufacturing companies. In addition, a different panel of 4,300 companies would yield different results. The M3 panel is comprised of companies with $500 million or more in shipments and a limited number of smaller companies. From a statistical perspective, the panel is not a probability sample; therefore, the sampling errors that are normally provided with sample surveys cannot be measured. Nonsampling errors are attributable to many sources. The use of company or divisional reports to estimate the monthly change for establishments is one source of nonsampling error. The use of primarily large companies to represent the month-tomonth movement of all companies is another potential source. Any corrections will be published in the full report. Corrections received after the full report will be released in the next month’s advance report. Any revisions made later than two months will be reflected in the annual benchmark publication. Additional survey documentation can be found on our web site: http://www.census.gov/m3.