Durable Goods Orders Fall Again
New orders for manufactured durable goods fell $5.0 billion (2.5%) to $191.0 billion in December, the U.S. Census Bureau announced. This decrease was followed by a 0.1% drop in November.
The report said “Excluding transportation, new orders increased 0.5 percent. Excluding defense, new orders decreased 2.5 percent. Transportation equipment, also down four of the last five months, had the largest decrease, $5.8 billion or 12.8 percent to $39.2 billion. This was due to nondefense aircraft and parts, which decreased $5.0 billion.” Excluding transportation, durable goods manufacturers’ shipments were at $152,495 million with new orders at $151,869 million.
Although new orders were low, shipments of manufactured durable goods in December were up 1.4% or $2.8 billion, after a 0.5% increase in November. Machinery had the largest increase, gaining $1.7 billion or 6.7%.
After increases for eight straight months, unfilled orders for manufactured durable goods in December decreased $3.6 billion to $822.8 billion. Transportation equipment decreased the most, losing $8.7 billion to stand at $473.6 billion. Excluding transportation, durable goods manufacturers’ unfilled orders were $349,200 million, and total inventories were $235,759 million.
Both inventories of manufactured durable goods and transportation equipment, which increased for the past twelve months, gained again in December. Inventories increased $2.1 billion to $322.0 billion, while transportation equipment, with the largest increase, was up $1.6 billion (1.9%) to $86.3 billion.
The Census Bureau reports that “Nondefense new orders for capital goods in December decreased $4.2 billion (6.3%) to $61.4 billion. Shipments increased $1.8 billion or 2.8 percent to $67.1 billion. Unfilled orders decreased $5.7 billion or 1.1 percent to $498.8 billion. Inventories increased $1.2 billion or 0.9 percent to $136.9 billion. Defense new orders for capital goods in December decreased $0.3 billion or 3.6 percent to $8.4 billion. Shipments increased $0.1 billion or 1.5 percent to $8.9 billion. Unfilled orders decreased $0.4 billion or 0.3 percent to $139.0 billion. Inventories decreased $0.1 billion or 0.8 percent to $17.6 billion.”
If you would like to see more on this, including charts, SIGN UP here for SMU's Free Trial.
Or, SUBSCRIBE now!