Economy

Durable Goods Orders Slip in January

February 26, 2020

Durable goods orders edged down 0.2 percent in January as defense orders sharply decreased from their surge in December. Defense capital goods plummeted 39.8 percent after an 87.4 percent increase the previous month, the Census Bureau reported today.

Orders for transportation slid 2.2 percent in January after gaining 8.8 percent in December. Excluding the volatile transportation category, orders climbed 0.9 percent.

Commercial aircraft and parts finally saw relief in January, soaring 346.2 percent as the category’s counterpart, defense aircraft and parts, tumbled 19.6 percent.

Core capital goods–non-defense minus aircraft and a proxy for business investment–increased 1.1 percent after dipping 0.5 percent the previous month.

The January advance report on durable goods manufacturers’ shipments, inventories and orders follows:

New Orders

New orders for manufactured durable goods in January decreased $0.4 billion or 0.2 percent to $246.2 billion. This decrease, down two of the last three months, followed a 2.9 percent December increase. Excluding transportation, new orders increased 0.9 percent. Excluding defense, new orders increased 3.6 percent. Transportation equipment, down four of the last five months, drove the decrease by $1.8 billion or 2.2 percent to $82.0 billion.

Shipments

Shipments of manufactured durable goods in January, down seven consecutive months, decreased $0.5 billion or 0.2 percent to $250.1 billion. This followed a 0.1 percent December decrease. Transportation equipment, also down seven consecutive months, drove the decrease by $1.3 billion or 1.6 percent to $82.1 billion.

Unfilled Orders

Unfilled orders for manufactured durable goods in January, up three of the last four months, increased $0.1 billion or were virtually unchanged to $1,157.0 billion. This followed a virtually unchanged December increase. Fabricated metal products, up two consecutive months, drove the increase by $0.3 billion or 0.3 percent to $86.2 billion.

Inventories

Inventories of manufactured durable goods in January, up 18 of the last 19 months, increased less than $0.1 billion or were virtually unchanged to $435.4 billion. This followed a 0.4 percent December increase. Fabricated metal products, up following three consecutive monthly decreases, drove the increase by $0.5 billion or 0.9 percent to $54.1 billion.

Capital Goods

Nondefense new orders for capital goods in January increased $8.0 billion or 12.4 percent to $72.7 billion. Shipments decreased $1.3 billion or 1.7 percent to $73.5 billion. Unfilled orders decreased $0.9 billion or 0.1 percent to $670.9 billion. Inventories decreased $0.4 billion or 0.2 percent to $198.5 billion. Defense new orders for capital goods in January decreased $7.5 billion or 39.8 percent to $11.4 billion. Shipments increased $0.6 billion or 4.8 percent to $13.1 billion. Unfilled orders decreased $1.7 billion or 1.0 percent to $163.0 billion. Inventories increased $0.2 billion or 0.9 percent to $24.1 billion.

Revised December Data

Revised seasonally adjusted December figures for all manufacturing industries were: new orders, $500.4 billion (revised from $499.3 billion); shipments, $504.4 billion (revised from $504.1 billion); unfilled orders, $1,156.9 billion (revised from $1,156.2 billion) and total inventories, $704.3 billion (revised from $704.9 billion).