November Durable Goods Orders Outpace Expectations



The Commerce Department reported that new orders for manufactured durable goods in November increased $8.2 billion or 3.5% to $241.6 billion. This increase, up three of the last four months, followed a 0.7% October decrease. Excluding transportation, new orders increased 1.2%. Excluding defense, new orders increased 3.5%. Transportation equipment, also up three of the last four months, led the increase, $6.3 billion or 8.4% to $81.2 billion. This was led by nondefense aircraft and parts, which increased $3.9 billion.

In a related story that appeared in the New York Times, Robert A. Dye, chief economist at Comerica in Dallas is quoted as saying, “We are coming out of the shadows of the Great Recession in many ways.” The Times noted that the increase, which outpaced economists’ expectations for a 2% rise, was for a range of goods, including aircraft, machinery, and computers and electronic products. Excluding transportation, orders recorded their largest gain in six months.

The Times said nonmilitary capital goods orders excluding aircraft, a closely watched proxy for business spending plans, surged 4.5%. The increase snapped two straight months of declines and was the largest advance since January.

Shipments of manufactured durable goods in November, up four consecutive months, increased $4.1 billion or 1.8% to $238.3 billion. This was at the highest level since the series was first published on a NAICS basis in 1992, and followed a 0.6% October increase. Machinery, also up four consecutive months, led the increase, $1.5 billion or 4.5% to $35.6 billion.

Unfilled orders for manufactured durable goods in November, up nine of the last ten months, increased $10.5 billion or 1.0% to $1,058.5 billion. This was at the highest level since the series was first published on a NAICS basis, and followed a 0.6% October increase. Transportation equipment, up three consecutive months, led the increase, $8.4 billion or 1.3% to $654.3 billion.

Inventories of manufactured durable goods in November, up seven of the last eight months, increased $1.2 billion or 0.3% to $384.7 billion. This was at the highest level since the series was first published on a NAICS basis, and followed a 0.3% October increase. Transportation equipment, up eighteen of the last nineteen months, led the increase, $0.5 billion or 0.4% to $120.8 billion.

Nondefense new orders for capital goods in November increased $7.5 billion or 9.4% to $88.0 billion. Shipments increased $1.0 billion or 1.3% to $75.0 billion. Unfilled orders increased $13.0 billion or 2.1% to $636.6 billion. Inventories increased $1.0 billion or 0.5% to $175.1 billion. Defense new orders for capital goods in November increased $0.5 billion or 6.3% to $9.2 billion. Shipments increased $0.9 billion or 9.6% to $10.8 billion. Unfilled orders decreased $1.6 billion or 0.9% to $165.3 billion. Inventories decreased $0.5 billion or 2.1% to $22.5 billion.

To read the Commerce Department report click here.

To read the New York Times story click here.


Like this story? Begin each business day with news you need to know! Click here to register now for our FREE Daily E-News Broadcast and start YOUR day informed!

Leave a comment

No tags available

View Latest Digital Edition

Terry Mulreany
Subscriptions: 800 708 9373 x130
[email protected]
Susie Angelucci
Advertising: 484.459.3016
[email protected]

View Latest Digital Edition

Visit our sister website for news, information, exclusive articles,
deal tables and more on the asset-based lending, factoring,
and restructuring industries.
www.abfjournal.com