Economy

Durable Goods Takes Unexpected Drop

December 23, 2014

Durable goods orders took an unexpected decline in November, falling 0.7 percent to $242.3 billion, according to data released by the Department of Commerce. The headline figure widely missed Bloomberg’s consensus of a 3.0 gain for the month. Defense orders dropped 8.1 percent, leading November’s decline after gaining 10 percent in October. Excluding transportation, new orders decreased 0.4 percent. Overall shipments decreased 0.4 percent, and capital goods shipments also fell 0.4 percent. Unfilled orders increased 0.4 percent, and inventories rose 0.4 percent in November 2014.

The full release by the US Census Buearu follows:

New Orders. New orders for manufactured durable goods in November decreased $1.7 billion or 0.7 percent to $242.3 billion, the U.S. Census Bureau announced today. This decrease, down three of the last four months, followed a 0.3 percent October increase and widely missed economist expectations of a gain of 3.0 percent. Excluding transportation, new orders decreased 0.4 percent. Excluding defense, new orders decreased 0.1 percent. Transportation equipment, also down three of the last four months, led the decrease, $0.9 billion or 1.2 percent to $75.5 billion.

Shipments. Shipments of manufactured durable goods in November, down three of the last four months, decreased $0.9 billion or 0.4 percent to $245.3 billion. This followed a 0.1 percent October decrease. Transportation equipment, down following two consecutive monthly increases, led the decrease, $0.7 billion or 1.0 percent to $72.2 billion.

Unfilled Orders. Unfilled orders for manufactured durable goods in November, up nineteen of the last twenty months, increased $4.4 billion or 0.4 percent to $1,178.9 billion. This was at the highest level since the series was first published on a NAICS basis in 1992 and followed a 0.5 percent October increase. Transportation equipment, up fourteen of the last fifteen months, led the increase, $3.3 billion or 0.4 percent to $749.9 billion.

Inventories. Inventories of manufactured durable goods in November, up nineteen of the last twenty months, increased $1.7 billion or 0.4 percent to $408.2 billion. This was at the highest level since the series was first published on a NAICS basis and followed a 0.4 percent October increase. Transportation equipment, also up nineteen of the last twenty months, led the increase, $1.2 billion or 0.9 percent to $133.2 billion.

Capital Goods. Nondefense new orders for capital goods in November increased $0.4 billion or 0.5 percent to $82.8 billion. Shipments decreased $0.5 billion or 0.6 percent to $79.3 billion. Unfilled orders increased $3.5 billion or 0.5 percent to $739.2 billion. Inventories increased $0.9 billion or 0.5 percent to $186.5 billion. Defense new orders for capital goods in November decreased $0.8 billion or 8.1 percent to $9.5 billion. Shipments increased $0.1 billion or 1.1 percent to $9.9 billion. Unfilled orders decreased $0.4 billion or 0.2 percent to $158.0 billion. Inventories increased $0.2 billion or 0.9 percent to $24.1 billion.

Revised October Data. Revised seasonally adjusted October figures for all manufacturing industries were: new orders, $496.2 billion (revised from $496.6 billion); shipments, $498.4 billion (revised from $499.2 billion); unfilled orders, $1,174.5 billion (revised from $1,174.2 billion); and total inventories, $655.8 billion (revised from $655.6 billion).

{amchart id=”119″ Durable Goods Shipments and New Orders 3MMA}