November Marks Seventh Month of Gains for Durable Goods Orders

“Headline durable goods orders rose to within reach of their pre-Covid level in November, but the pace of gains is slowing and factory activity will grind forward in a low gear in 2021,” said Oren Klachkin, lead U.S. economist at Oxford Economics.

The November 2020 advance report on durable goods manufacturers’ shipments, inventories and orders follows:

New Orders

New orders for manufactured durable goods in November increased $2.2 billion or 0.9 percent to $244.2 billion. This increase, up seven consecutive months, followed a 1.8 percent October increase. Excluding transportation, new orders increased 0.4 percent. Excluding defense, new orders increased 0.7 percent. Transportation equipment, up six of the last seven months, led the increase by $1.5 billion or 1.9 percent to $78.8 billion.

Shipments

Shipments of manufactured durable goods in November, up six of the last seven months, increased $0.7 billion or 0.3 percent to $250.1 billion. This followed a 1.5 percent October increase. Primary metals, up seven consecutive months, led the increase by $0.3 billion or 1.8 percent to $19.2 billion.

Unfilled Orders

Unfilled orders for manufactured durable goods in November, down eight of the last nine months, decreased $0.8 billion or 0.1 percent to $1,072.9 billion. This followed a 0.2 percent October decrease. Transportation equipment, down nine consecutive months, drove the decrease by $3.5 billion or 0.5 percent to $713.3 billion.

Inventories

Inventories of manufactured durable goods in November, up three consecutive months, increased $3.9 billion or 0.9 percent to $426.6 billion. This followed a 0.3 percent October increase. Transportation equipment, up 26 of the last 27 months, led the increase by $2.4 billion or 1.6 percent to $150.7 billion.

Capital Goods

Nondefense new orders for capital goods in November increased $0.2 billion or 0.3 percent to $71.2 billion. Shipments decreased $1.6 billion or 2.2 percent to $71.8 billion. Unfilled orders decreased $0.6 billion or 0.1 percent to $591.2 billion. Inventories increased $2.3 billion or 1.2 percent to $196.1 billion.

Defense new orders for capital goods in November decreased $0.1 billion or 0.5 percent to $12.5 billion. Shipments increased $0.8 billion or 6.7 percent to $13.4 billion. Unfilled orders decreased $0.9 billion or 0.5 percent to $178.7 billion. Inventories decreased $0.4 billion or 1.7 percent to $21.0 billion.

Revised October Data

Revised seasonally adjusted October figures for all manufacturing industries were: new orders, $482.0 billion (revised from $480.8 billion); shipments, $489.4 billion (revised from $488.6 billion); unfilled orders, $1,073.7 billion (revised from $1,073.3 billion) and total inventories, $687.9 billion (revised from $687.3 billion).