Durable Goods New Orders Up 3% in December - Modern Distribution Management

Durable Goods New Orders Up 3% in December

MAPI economist: Outlook for manufacturing positive but moderating.

New orders for manufactured durable goods in December increased $6.2 billion or 3.0 percent to $214.5 billion, according to an advance release from the U.S. Census Bureau. This increase, up five of the last six months, followed a 4.3 percent November increase.

We Deliver Distribution News to Your Inbox
Sign up below to receive MDM Update, your free weekly distribution news update by email.

\"\"

Excluding transportation, new orders increased 2.1 percent. Excluding defense, new orders increased 3.5 percent. Transportation equipment, up two consecutive months, had the largest increase, $3.0 billion or 5.5 percent to $58.4 billion. This was due to nondefense aircraft and parts, which increased $3.1 billion.

\”The sharp positive turn in equipment spending during December might very well have been motivated by concerns about the expiration of equipment expensing provisions,\” says Cliff Waldman, economist for the Manufacturers Alliance for Productivity and Innovation (MAPI). \”But the tenor of the December report was positive overall for U.S. manufacturing strength, with strong gains in such sectors as machinery and primary metals. However, given the spate of data-distorting events that occurred during 2011, from the Japanese earthquake to unnerving fights over the U.S. debt ceiling, the December numbers are not necessarily indicative of a sea change in the U.S. outlook, especially in light of clear evidence of widespread slowing in global growth. The most likely forecast for U.S. manufacturing is for positive but moderating output growth.\”

Shipments of manufactured durable goods in December, up two of the last three months, increased $4.3 billion or 2.1 percent to $207.3 billion. This followed a 0.3 percent November decrease. Primary metals, up seventeen of the last eighteen months, had the largest increase, $2.2 billion or 8.2 percent to $29.0 billion. This was at the highest level since the series was first published on a NAICS basis in 1992 and followed a 5.0 percent November increase.

Unfilled orders for manufactured durable goods in December, up twenty of the last twenty one months, increased $13.1 billion or 1.5 percent to $912.3 billion. This followed a 1.4 percent November increase. Transportation equipment, up eleven of the last twelve months, had the largest increase, $10.6 billion or 2.1 percent to $529.7 billion.

Inventories of manufactured durable goods in December, up twenty four consecutive months, increased $1.2 billion or 0.3 percent to $370.1 billion. This was at the highest level since the series was first published on a NAICS basis and followed a 0.6 percent November increase. Transportation equipment, also up twenty four consecutive months, had the largest increase, $1.7 billion or 1.5 percent to $116.4 billion.

Nondefense new orders for capital goods in December increased $4.6 billion or 5.8 percent to $84.4 billion. Shipments increased $1.8 billion or 2.6 percent to $71.5 billion. Unfilled orders increased $12.9 billion or 2.4 percent to $545.6 billion. Inventories increased $1.0 billion or 0.6 percent to $170.6 billion.

Defense new orders for capital goods in December decreased $0.8 billion or 12.4 percent to $5.3 billion. Shipments increased $0.6 billion or 8.9 percent to $7.6 billion. Unfilled orders decreased $2.2 billion or 1.5 percent to $149.0 billion. Inventories decreased $0.6 billion or 2.7 percent to $20.0 billion.

For more detail, download the pdf below.

Click Here


Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.