NEW YORK ( TheStreet) -- While overall orders for durable goods fell in June, orders in commercial aircrafts says all is not lost. The Commerce Department reported a drop in company orders in June by 2.1%, reversing a positive uptick seen in May. The decrease was disappointing given that consensus estimate was looking for a 0.5% gain and economists polled by Briefing.com were expecting orders to slip by 0.1%. The cut in June orders was largely driven by lower demand for aircraft and automobile equipment. Orders for transportation equipment got hit hardest in June, plummeting $4.2 billion, or 8.5%, to $45.4 billion. U.S. durables excluding transportation rose 0.1% in June after rising 0.7% in May. However, Rich Bergmann, an executive in Accenture's manufacturing group, says, "I don't think it's a gloom and doom story."
Commercial airplane unit orders at least seem to be roaring. Boeing ( BA - Get Report) in the second quarter, for example, has brought its backlog to about $262 billion. The company expects to receive deliveries for its flagship 787 Dreamliner aircraft in the latter half of the year. Today, Boeing reported earning of $1.25 per share for the second quarter, better than analysts' expectation of $0.98 per share. Revenue soared almost 20%. American Airlines ( AMR) recently announced what it says is "the largest aircraft order in history." The airline company plans to buy 460 new Boeing and Airbus aircrafts, which will be delivered in 2012 and 2013. "I still see good strength in the aircraft sector," said Bergmann, noting that month-to-month fluctuations should be expected. Meanwhile, the macro numbers suggest that companies haven't been quick to stock up on inventories yet. The month of May saw a revised 1.9% rebound in durable goods orders but just two months ago, orders fell 3.6% in April, the biggest decline since October 2010. During the last year and a half of the economic recovery, companies have "leaned" their supply processes so that they don't have to keep large inventories on their balance sheets, said Bergmann. From the management perspective, he said that the thinking is, "we don't want to buy something until we're going to use it." "Companies have controlled their inventories," said Marc Pado, U.S. market strategist with Cantor Fitzgerald. "This way they are less vulnerable to economic disruption." The decrease in aircraft spending, which hurt durable goods orders in June, was partially due to cuts in defense spending in Washington, said Bergmann. Orders for military cargo planes and fighter jets always "ebb and flow," he added. Foreign countries also are facing budget challenges that have forced them to cut orders. -- Written by Chao Deng in New York.