New orders for manufactured durable goods in January increased $5.3 billion or 2.7 percent to $200.5 billion, the U.S. Census Bureau announced in an advanced report. This increase followed three consecutive monthly decreases including a 0.4 percent December decrease.
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Excluding transportation, new orders decreased 3.6 percent. Excluding defense, new orders increased 1.9 percent. Transportation equipment, also up following three consecutive monthly decreases, had the largest increase, $10.9 billion or 27.6 percent to $50.5 billion. This was led by to nondefense aircraft and parts, which increased $7.3 billion.
Shipments of manufactured durable goods in January, up four of the last five months, increased $0.6 billion or 0.3 percent to $202.9 billion. This followed a 2.3 percent December increase.
Primary metals, up six consecutive months, had the largest increase, $0.9 billion or 4.0 percent to $23.0 billion.
Unfilled orders for manufactured durable goods in January, up nine of the last 10 months, increased $4.3 billion or 0.5 percent to $829.4 billion. This followed a 0.2 percent December decrease. Transportation equipment, up following two consecutive monthly decreases, had the largest increase, $2.3 billion or 0.5 percent to $475.7 billion.
Inventories of manufactured durable goods in January, up 13 consecutive months, increased $2.2 billion or 0.7 percent to $324.8 billion. This followed a 0.8 percent December increase.
Transportation equipment, also up thirteen consecutive months, had the largest increase, $0.6 billion or 0.7 percent to $86.9 billion.
Nondefense new orders for capital goods in January increased $2.9 billion or 4.6 percent to $66.3 billion. Shipments decreased $1.9 billion or 2.9 percent to $65.7 billion. Unfilled orders increased $0.7 billion or 0.1 percent to $501.1 billion. Inventories increased $1.3 billion or 0.9 percent to $138.4 billion.
Defense new orders for capital goods in January increased $2.6 billion or 31.5 percent to $10.9 billion. Shipments decreased $0.7 billion or 8.1 percent to $8.2 billion. Unfilled orders increased $2.7 billion or 1.9 percent to $141.4 billion. Inventories increased slightly or 0.1 percent to $17.5 billion.
Daniel Meckstroth, chief economist for the Manufacturers Alliance/MAPI, said: “Business equipment spending is the bright spot in the economic outlook now and in the future. The U.S. economy must transition to a greater role for investment and exports and gradually become less reliant on consumer spending growth for our prosperity. With 100 percent depreciation of business equipment, strong corporate profits, excessive cash flow, rising capacity utilization rates, and moderate GDP growth there is every reason to expect robust capital spending and business equipment production growth this year.”
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