Factory Orders Fall 1.5%

Factory orders fell 1.5% in December, this was less than expectations for a 1.8% fall.

November’s reading was revised down to show a 1.5% rise, from an initial reading of a 1.8% rise.

New orders for manufactured durable goods fell 4.2% to $US230 billion.

Here’s the summary from the report:

New orders for manufactured goods in December, down two of the last three months, decreased $US7.2

billion or 1.5 per cent to $US489.2 billion, the U.S. Census Bureau reported today. This followed a 1.5 per cent November increase. Excluding transportation, new orders increased 0.2 per cent.

Shipments, down following five consecutive monthly increases, decreased $US1.2 billion or 0.2 per cent to $US492.7 billion. This followed a 0.8 per cent November increase.

Unfilled orders, up 10 of the last eleven months, increased $US3.9 billion or 0.4 per cent to $US1,061.7 billion. This was at the highest level since the series was first published on a NAICS basis in 1992 and followed a 0.9 per cent November increase. The unfilled orders-to-shipments ratio was 6.53, up from 6.44 in November.

Inventories, up twelve of the last thirteen months, increased $US2.9 billion or 0.5 per cent to $US636.6 billion.This was also at the highest level since the series was first published on a NAICS basis and followed a 0.1 per cent November increase. The inventories-to-shipments ratio was 1.29, up from 1.28 in November.

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