U.S. durable goods orders were flat in May, as demand for airplanes and defense goods offset weakness in machinery and metals, the U.S. Commerce Department announced Wednesday.

Economists surveyed by Bloomberg News had expected May durable goods orders to remain flat. Durable goods orders decreased a revised 1.0% in April.

Equally significant, excluding the often-volatile transportation component, durable goods orders fell 0.9% in May. Also, excluding defense orders, durable goods orders declined 0.6%.

In May, shipments fell 1.1%, unfilled orders increased 0.9%, inventories increased 0.4%.

By category, in May orders for civilian aircraft jumped 10.3%, transportation increased 2.6%, computers and electronics climbed 2%, motor vehicles and parts declined 3.3%, transportation goods dropped 3.7%, and machinery declined 5.3%.

Foreign demand continues

Economist David H. Wang told BloggingStocks Wednesday exports continue to offset sluggish domestic demand conditions. "Export demand continued in the May report. It's helping keep U.S. businesses and factories busy during this down period in domestic demand," Wang said.

U.S. durable goods orders in April 2008 fell just 0.5% but the core rate rose as demand for electronics goods offset weakness in airplanes / autos, the U.S. Commerce Department announced Wednesday.

Economists surveyed by Bloomberg News had expected April 2008 durable goods orders to decline 1.1%. Durable goods orders decreased a revised 0.9% in March 2008.

Equally significant, excluding transportation, durable goods orders rose 2.5% in April 2008, the biggest increase in nine months, and the second straight increase. Durable goods orders excluding transportation rose 1.5% in March 2008.

In April 2008 electrical equipment / appliances / components orders rose 27.8%, non-defense capital goods increased 4.2%, shipments rose 0.5%, unfilled orders increased 1.0%, transportation fell 8%, airplane orders fell 24%, and automobiles declined 3.3%.

Economist David H. Wang told BloggingStocks exports are offsetting sluggish domestic demand conditions. "In the April report we can see demand from foreign purchasers picking up. If this trend continues in the months ahead it will help the U.S. pull out of its housing-induced economic contraction," Wang said. "China, broader Asia, and Latin America are helping to fill in the gaps created by low domestic demand."

Further, Wang said the significant export lift is yet another change created by globalization -- the development of national economies and the spread of capitalism to every region of the world. If that foreign demand remains strong, the export trend has the capacity to shorten the U.S. recession -- "make it more shallow" than previous U.S. economic downturns.

U.S. durable goods orders fell 0.3% in March 2008, as demand for machinery dropped substantially, the U.S. Commerce Department announced Thursday.

Economists surveyed by Bloomberg News had expected March 2008 durable goods orders to rise 0.6%. Durable goods orders decreased a revised 0.9% in February 2008.

Excluding transportation, durable goods orders rose 1.5% in March 2008.

In March 2008 core capital goods orders were flat, after declining the previous two months. Inventories rose 1.1%, the category's eighth increase in the past nine months. Shipments decreased 0.4%, its fourth decline in the last five months. Unfilled orders increased 0.9%.

Another negative datapoint

Economist David H. Wang told BloggingStocks Thursday the March 2008 durable goods statistic is additional bad news for the U.S. economy.

"Demand continues to weaken, and a third straight durable goods order decline indicates that the U.S. economy is contracting. For the economy to grow, we must see stronger durable goods demand, " Wang said. "If you exclude the defense-related hardware component, the durable goods order statistic would have been even worse. U.S. corporations continue to benefit from international demand, but those exports are not enough to overcome clear weakness in orders and sales at home."

U.S. durable goods orders fell 1.7% in February 2008, as demand for machinery dropped substantially, the U.S. Commerce Department announced Wednesday.

Economists surveyed by Bloomberg News had expected February 2008 durable goods orders to rise 0.7%. Durable goods orders decreased a revised 4.7% in January 2008. Excluding transportation, durable goods orders fell 2.6% in February 2008, the biggest decline since January 2007.

Machinery orders weigh

In February 2008, capital goods orders fell 2.6% following a 1.8% drop in January 2008, as businesses cut back purchases that enhance productivity -- historically a sign that they believe sluggish economic times are ahead. Equally telling, machinery orders plunged 13.3% in February 2008. Motor vehicle orders dropped 2.7%. Aircraft orders were a bright spot, rising 5.4%.

Shipments dropped 2.1%, the most since January 2007. Orders excluding defense equipment declined 1.6% and bookings for military gear plummeted 10%.

More bad news for U.S. economy

Economist David H. Wang told BloggingStocks Wednesday the disappointing February 2008 durable goods statistic is more troubling news for the economy.

"If we're not in a recession right now, I don't know what nation is," Wang said. "Demand is weakening and American corporations are putting off capital goods purchases on what they're seeing in the home economy, which is softer demand." Wang added that U.S. multinational corporations will continue to benefit from decent export sales, particularly to emerging markets, but domestic market-oriented companies will show "clear effects of the U.S. slowdown" in their quarterly results this year.