How Aircraft Orders Are Keeping the Economy From Gliding [Video]

After helping propel durable goods orders higher over the past several months, aircraft orders declined significantly in June, bringing the broader measure of business investment down with it.

Census Bureau data showed durable goods orders declined 6.6% in June from the prior month, reversing a four-month streak of gains powered by steady growth in transportation orders. It’s the largest one-month decline in the indicator since 2020.

Much of that decline can be traced back to transportation equipment orders, a subcategory of durable goods mainly comprising aircraft orders. It came in lower by 20% in June compared to May. Excluding transportation orders, durable goods orders were higher by 0.5% for the month.

The decline in durable goods orders was unexpected, as analysts surveyed by the Wall Street Journal and Dow Jones Newswires projected an increase of 0.3% for the month. Economists look at durable goods orders to indicate how businesses invest for future growth. 

“While the manufacturing environment is still struggling, this …