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Monday, December 10, 2018
HomeNewsEconomyDurable Goods Weigh Down Factory Orders After 5 Consecutive Monthly Gains

Durable Goods Weigh Down Factory Orders After 5 Consecutive Monthly Gains

A 787 Dreamliner being built for Air India is pictured at South Carolina Boeing final assembly building in North Charleston, South Carolina. (Photo: Reuters)
A 787 Dreamliner being built for Air India is pictured at South Carolina Boeing final assembly building in North Charleston, South Carolina. (Photo: Reuters)

A 787 Dreamliner being built for Air India is pictured at South Carolina Boeing final assembly building in North Charleston, South Carolina. (Photo: Reuters)

Factory orders, as measured by new orders for manufactured goods, fell 1.4% to $497.7 billion in January. The $6.9 billion decline follows 5 consecutive monthly gains, the U.S. Census Bureau reported.

This followed a 1.8% December increase.

Shipments, which have been up for 13 of the last 14 months, continued to increase by $2.8 billion, or 0.6% to $498.8 billion following a 0.7% December increase. Unfilled orders, down following four consecutive monthly increases, decreased $2.9 billion or 0.3% to $1,141.2 billion following a 0.6% December increase.

The unfilled orders-to-shipments ratio was 6.54, down from 6.58 in December. Inventories, up 14 of the last 15 months, increased $2.1 billion or 0.3% to $672.4 billion following a 0.7% December increase.

The inventories-to shipments ratio was 1.35, unchanged from December.

New Orders

New orders for manufactured durable goods in January, down following two consecutive monthly increases, decreased $9.0 billion or 3.6% to $240.0 billion, up from the previously published 3.7% decrease. This followed a 2.7% December increase. Transportation equipment, also down following two consecutive monthly increases, led the decrease, $8.6 billion or 10.0 percent to $77.9 billion. New orders for manufactured nondurable goods increased $2.1 billion or 0.8 percent to $251.7 billion.

Shipments

Shipments of manufactured durable goods in January, up eight of the last nine months, increased $0.7 billion or 0.3% to $247.1 billion, up from the previously published 0.2 percent increase. This followed a 0.5% December increase. Transportation equipment, up two of the last three months, led the increase, $0.6 billion or 0.7% to $81.5 billion. Shipments of manufactured nondurable goods, up nine of the last ten months, increased $2.1 billion or 0.8% to $251.7 billion. This followed a 0.9% December increase. Petroleum and coal products, up seven consecutive months, led the increase, $1.8 billion or 3.5% to $52.5 billion.

Unfilled Orders

Unfilled orders for manufactured durable goods in January, down following four consecutive monthly increases, decreased $2.9 billion or 0.3% to $1,141.2 billion, unchanged from the previously published decrease. This followed a 0.6 percent December increase. Transportation equipment, down three of the last four months, drove the decrease, $3.6 billion or 0.5% to $771.9 billion.

Inventories

Inventories of manufactured durable goods in January, up eighteen of the last nineteen months, increased $1.3 billion or 0.3% to $408.8 billion, unchanged from the previously published increase. This followed a 0.5% December increase. Transportation equipment, up two consecutive months, led the increase, $0.7 billion or 0.6% to $131.9 billion.

Inventories of manufactured nondurable goods, up eight consecutive months, increased $0.7 billion or 0.3% to $263.6 billion. This followed a 0.9% December increase. Petroleum and coal products, up seven consecutive months, drove the increase, $0.7 billion or 1.7% to $42.4 billion. By stage of fabrication, January materials and supplies increased 0.4 percent in durable goods and decreased 0.1% in nondurable goods.

Work in process increased 0.5% in durable goods and was virtually unchanged in nondurable goods. Finished goods were virtually unchanged in durable goods and increased 0.7 percent in nondurable goods.

Written by
Staff Writing Group

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

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