Factory Orders, Shipments Gained in December

New orders and shipments of manufactured goods gained in December, driven by increases in orders for machinery and shipments of petroleum and coal, the U.S. Census Bureau reported Thursday.

As reported last week, orders and shipments of durable goods climbed. This week the Census Bureau added increases for nondurable goods to round out the picture of an economy building a recovery.

New orders for manufactured goods in December, up eight of the last nine months, increased $3.7 billion or 1 percent to $370.4 billion, the Census Bureau said. This followed a 1 percent November increase. Excluding transportation, new orders increased
1.2 percent.

New orders for manufactured durable goods in December, up following two consecutive monthly decreases, increased $1.6 billion or 1 percent to $169 billion, revised from the previously published 0.3 percent increase. This followed a 0.4 percent November decrease. Machinery, up three of the last four months, had the largest increase, $1.5 billion or 6.6 percent to $24.3 billion.

New orders for manufactured nondurable goods increased $2.1 billion or 1 percent to $201.4 billion.

Shipments of all factory goods, up six of the last seven months, increased $7 billion or 1.9 percent to $383.1 billion. This followed a 1.6 percent November increase.

Shipments of manufactured durable goods in December, up four consecutive months, increased $5 billion or 2.8 percent to $181.7 billion, revised from the previously published 2.9 percent increase. This followed a 0.8 percent November increase. Transportation equipment, up three of the last four months, had the largest increase, $1.8 billion or 4.2 percent to $45.8 billion.

Shipments of manufactured nondurable goods, up eight of the last nine months, increased $2.1 billion or 1 percent to $201.4 billion. This followed a 2.2 percent November increase. This increase was led by petroleum and coal products, which increased $1.2 billion or 2.8 percent to $44.7 billion, the Census Bureau said.

Unfilled orders for all factory goods, down fifteen consecutive months, decreased $7.4 billion or 1 percent to $716.7 billion. This was the longest streak of consecutive monthly decreases since the series was first published on a NAICS basis in 1992. This followed a 0.7 percent November decrease.

Inventories, down following two consecutive monthly increases, decreased $0.3 billion or 0.1 percent to $495 billion. This followed a 0.2 percent November increase.

Contact Thomas L. Gallagher at tgallagher@joc.com.