The Census Bureau said that new factory orders declined by 0.2 percent in November, falling for the third time in the past four months. As such, this report was somewhat disappointing, particularly following the 1.3 percent increase observed in October. New manufactured goods orders decreased from $473.1 billion in October to $472.2 billion in November. On a year-over-year basis, new orders have declined by 4.2 percent, down from $493.0 billion in November 2014. This speaks to the multitude of headwinds hitting the manufacturing sector lately, ranging from currency challenges to reduced commodity prices to sluggish economic growth worldwide.
With durable goods sales unchanged for the month, as noted in preliminary data released earlier, orders for nondurable goods were off 0.4 percent in November. With that said, durable goods orders would have been weaker if transportation equipment data were excluded, mainly because of a large decline in nondefense aircraft demand. These numbers can be quite volatile from month-to-month, where sales are often batched together around key events, such as air shows. Excluding transportation, new factory orders were down 0.3 percent. This speaks to broader weaknesses beyond transportation – something that can be better seen in the year-over-year figures. New factory orders excluding transportation have decreased from $416.8 billion in November 2014 to $390.4 billion in this release, off 6.3 percent.