Economy

Durable Goods Orders Up 1.8% in January

February 27, 2017

Durable goods orders grew 1.8 percent in January, according to data from the U.S. Census Bureau. The increase was due mostly to a jump in orders for commercial and military aircraft, up 70 percent and 60 percent, respectively. Core capital goods (non-military goods excluding aircraft) fell 0.4 percent after a larger than expected gain of 1.1 percent in December. Core capital goods are considered an indicator of future business investment.

The report from the Department of Commerce is reprinted below:

February 27, 2017 — The U.S. Census Bureau announces the January advance report on manufacturers’ shipments, inventories and orders:

New Orders

New orders for manufactured durable goods in January increased $4.0 billion or 1.8 percent to $230.4 billion, the U.S. Census Bureau announced today. This increase, up following two consecutive monthly decreases, followed a 0.8 percent December decrease. Excluding transportation, new orders decreased 0.2 percent. Excluding defense, new orders increased 1.5 percent. Transportation equipment, also up following two consecutive monthly decreases, drove the increase, $4.3 billion or 6.0 percent to $76.4 billion.

Shipments

Shipments of manufactured durable goods in January, down following two consecutive monthly increases, decreased $0.2 billion or 0.1 percent to $238.3 billion. This followed a 1.6 percent December increase. Machinery, also down following two consecutive monthly increases, drove the decrease, $0.5 billion or 1.6 percent to $30.7 billion.

Unfilled Orders

Unfilled orders for manufactured durable goods in January, down seven of the last eight months, decreased $4.0 billion or 0.4 percent to $1,114.3 billion. This followed a 0.7 percent December decrease. Transportation equipment, also down seven of the last eight months, drove the decrease, $5.6 billion or 0.7 percent to $752.9 billion.

Inventories

Inventories of manufactured durable goods in January, up two of the last three months, increased $0.1 billion or virtually unchanged to $383.8 billion. This followed a 0.1 percent December decrease. Computers and electronic products, up three of the last four months, drove the increase, $0.2 billion or 0.5 percent to $42.7 billion.

Capital Goods

Nondefense new orders for capital goods in January increased $2.4 billion or 3.6 percent to $69.0 billion. Shipments decreased $0.3 billion or 0.4 percent to $71.9 billion. Unfilled orders decreased $2.9 billion or 0.4 percent to $688.7 billion. Inventories decreased $0.3 billion or 0.2 percent to $170.4 billion. Defense new orders for capital goods in January increased $0.8 billion or 8.0 percent to $10.4 billion. Shipments increased less than $0.1 billion or 0.2 percent to $11.0 billion. Unfilled orders decreased $0.6 billion or 0.4 percent to $140.3 billion. Inventories increased $0.3 billion or 1.6 percent to $21.1 billion.

Revised December Data

Revised seasonally adjusted December figures for all manufacturing industries were: new orders, $464.6 billion (revised from $464.9 billion); shipments, $476.8 billion (revised from $475.8 billion); unfilled orders, $1,118.3 billion (revised from $1,119.5 billion) and total inventories, $625.7 billion (revised from $625.6 billion).