Tag

shipments

durable goods

Reduced Transportation Equipment Sales Pushed Durable Goods Orders Lower in December

By | Economy, Shopfloor Economics | No Comments

The Census Bureau said that new durable goods orders declined 0.4 percent in December. New orders decreased from $228.0 billion in November to $227.0 billion in December. However, these data have been skewed by volatility in the transportation equipment segment. Defense aircraft and parts orders plummeted 63.9 percent in December after soaring by 99.1 percent in November. Excluding transportation, new orders for durable goods were up 0.5 percent, rising from $152.6 billion to $153.4 billion, its fastest pace since October 2014. In general, these data reflect better performance after the sector has struggled mightily over the past two years on global challenges. On a year-over-year basis, new durable goods orders have risen 1.6 percent, with 3.5 percent growth since December 2015 excluding transportation equipment. Read More

Factory Orders Fell for the First Time Since June in November

By | Economy, Shopfloor Economics | No Comments

The Census Bureau said that new factory orders fell 2.4 percent in November, declining for the first time since June. Yet, the decrease in November came largely from a drop in nondefense aircraft sales, which can be highly volatile from month-to-month. Excluding transportation equipment, new orders for manufactured goods edged up 0.1 percent. Over the longer term, new factory orders have started to stabilize on a year-over-year basis. While orders were off 0.3 percent since November 2015 that represents progress from the 5.8 percent year-over-year declines seen in June. More positively, new factory orders excluding transportation have risen 1.45 percent over the past year in this report, only the second monthly year-over-year increase. Read More

Factory Orders Grew at Fastest Monthly Pace in October in 16 Months

By | Economy, Shopfloor Economics | No Comments

The Census Bureau said that new factory orders rose 2.7 percent in October, the fourth straight monthly gain and its fastest pace of monthly growth since June 2015. Yet, the jump in October came largely from a big boost in aircraft sales, with transportation equipment orders up 12.0 percent. Excluding transportation, new orders for manufactured goods increased 0.8 percent. Over the longer term, new factory orders have started to stabilize on a year-over-year basis, up 1.3 percent since October 2015 but improving from a negative year-over-year position in August. Nonetheless, new orders for manufacturing goods excluding transportation have risen just 0.5 percent over the past 12 months. This suggests still-soft demand in the broader manufacturing sector, even as this was the first positive year-over-year reading since October 2014. Read More

durable-goods

New Durable Goods Orders Jumped 4.8 Percent in October

By | Economy, Shopfloor Economics, Shopfloor Main | No Comments

The Census Bureau said that new durable goods orders jumped 4.8 percent in October. New orders rose from an upwardly revised $228.4 billion in September to $239.4 billion in October. On a year-over-year basis, sales have increased 2.1 percent since October 2015, up from $234.5 billion. However, the data have been skewed by volatility in the transportation equipment segment. In October, transportation equipment orders soared 12.0 percent higher on strong sales for defense and nondefense aircraft and parts. Excluding transportation, new orders for durable goods increased 1.0 percent in October, but over the past 12 months, growth in activity has been more minimal, up just 0.3 percent.

Therefore, even with the healthy gains in demand seen in October, new orders growth for durable goods continue to be quite weak on a year-over-year basis, highlighting lingering challenges in the sector. Along those lines, core capital goods orders (or nondefense capital goods excluding aircraft) increased 0.4 percent in October, but have fallen 4.0 percent over the past 12 months. Read More

Factory Orders Edged Higher in September but Remain Soft Over the Past Year

By | Economy, Shopfloor Economics | No Comments

The Census Bureau said that new factory orders rose 0.3 percent in September, slowing slightly from the 0.4 percent gain seen in August. These data were pulled somewhat lower by a sharp decline in defense aircraft and parts, with transportation equipment orders down 1.1 percent. Excluding transportation, new orders for manufactured goods increased 0.6 percent. Over the longer term, new factory orders have been quite soft over the past 12 months, up 0.6 percent since September 2015 or down 0.1 percent year-over-year with transportation excluded. This suggests broader weaknesses for manufacturers in terms of demand, perhaps highlighting why business leaders in the sector continue to be so cautious. Read More

durable-goods

New Durable Goods Orders Continue to Disappoint in September

By | Economy, Shopfloor Economics | No Comments

The Census Bureau said that new durable goods orders continue to disappoint in September. New orders were off 0.1 percent, edging down from $227.6 billion to $227.3 billion. On a year-over-year basis, sales have increased 1.6 percent since September 2015, up from $223.7 billion. However, these data have been skewed by volatility in the transportation equipment segment. In September, transportation equipment orders fell 0.8 percent, largely on reduced activity for defense aircraft and parts. Excluding transportation, new orders for durable goods were up 0.2 percent in September, but over the past 12 months, they were essentially unchanged, down 0.04 percent.

As such, the broader demand for durable goods over the past year remained weak, highlighting ongoing challenges in the sector. Along those lines, core capital goods orders (or nondefense capital goods excluding aircraft) declined 1.2 percent in September, with a year-over-year decrease of 4.1 percent. Read More

durable-goods

New Durable Goods Orders Remained Weak in August

By | Economy, Shopfloor Economics | No Comments

The Census Bureau said that new durable goods orders remained weak in August, continuing a trend that we have seen over the past year or so. New orders dropped from $227.0 billion in July to $226.9 billion in August, essentially unchanged for the month. Moreover, on a year-over-year basis, sales have decreased by 1.3 percent since August 2015. This highlights the ongoing challenges in the sector, including global headwinds and ongoing economic anxieties.

With that said, the headline number received a bit of a boost from transportation equipment orders in August, which were up 0.6 percent largely on stronger demand for autos and defense aircraft. Excluding transportation equipment, new orders for durable goods were down 0.4 percent in August and 1.1 percent year-over-year. This speaks to broader softness outside of transportation among durable goods manufacturers. So-called “core” capital goods orders (or nondefense capital goods excluding aircraft) were up 0.6 percent in August. That might be more encouraging, however, if demand for core capital goods did not decline 3.1 percent year-over-year. Read More

Factory Orders Fell for the Second Straight Month in June, Largely on Volatility in Aircraft Sales

By | Economy, Shopfloor Economics | No Comments

The Census Bureau said that new factory orders fell for the second straight month in June, down 1.5 percent in this report after being off by 1.2 percent in May. With that said, the decline mainly stemmed from volatility in aircraft sales, which can experience wide swings from month to month. Excluding transportation equipment, factory orders rose 0.4 percent in June. New orders for manufactured goods have been quite weak over the past 12 months, with a year-over-year decline of 5.6 percent. Excluding transportation, new factory orders were off 4.4 percent since June 2015. This suggests broader softness for manufacturers in terms of demand, perhaps highlighting why business leaders in the sector continue to be so cautious. Read More

durable goods

New Durable Goods Orders Fell Sharply in June on Reduced Aircraft Sales and Broader Weaknesses

By | Economy, Shopfloor Economics | No Comments

The Census Bureau said that new durable goods orders fell sharply in June on reduced aircraft sales and broader weaknesses. New orders dropped from $229.0 billion in May to $219.8 billion in June, a decline of 4.0 percent. Moreover, on a year-over-year basis, sales have decreased by 6.4 percent since June 2015. This highlights the ongoing challenges in the sector over the course of the past 12 months or more. With that said, much of the decline in activity in June came from lower nondefense and defense aircraft orders, down 58.8 percent and 7.4 percent for the month, respectively. Note that airplane orders can often be choppy from month-to-month, especially for nondefense sales, with transactions often centering around large trade shows. Excluding transportation equipment, new orders for durable goods were off by 0.5 percent in June, with 3.6 percent decreases year-over-year. This indicated broader weaknesses in the sector, even if the declines were more modest than the headline number suggests.

Looking more closely at the various durable goods sectors, the data were mostly lower in June. The exceptions were motor vehicles and parts (up 2.6 percent) and electrical equipment and appliances (up 0.8 percent), both of which notched some gains. Those increases, however, were not enough to offset declining new orders aircraft sales, as noted above, and for computers and electronic products (down 2.2 percent), primary metals (down 1.3 percent), fabricated metal products (down 0.3 percent) and machinery (down 0.1 percent).

Meanwhile, durable goods shipments increased by 0.4 percent in June, rebounding from the 0.3 percent decrease seen in May. Nonetheless, the higher figure in this release was boosted by motor vehicles (up 2.7 percent), with transportation equipment orders up 1.4 percent for the month. Excluding transportation, shipments of durable goods declined by 0.2 percent. Indeed, the sector-by-sector breakdowns were mixed, but mostly negative. Shipments fell for fabricated metal products (down 0.7 percent), machinery (down 0.4 percent), electronic equipment and appliances (down 0.2 percent), computers and electronic products (down 0.1 percent) and other durable goods (down 0.1 percent). Beyond automobiles, other segments with higher orders in June were communications equipment (up 6.0 percent) and (primary metals (up 0.8 percent).

Since June 2015, durable goods shipments have fallen 2.0 percent, with a decline of 3.2 percent when transportation equipment were excluded.

Factory Orders Fell 1 Percent in May

By | Economy, Shopfloor Economics | No Comments

The Census Bureau said that new factory orders fell 1.0 percent in May, ending two straight monthly gains. Excluding transportation, sales eked out a small increase, up 0.1 percent. Defense aircraft fell sharply in May, but the data can often be quite volatile from month to month. New orders for manufactured goods have been relatively weak over the past 12 months, with a year-over-year decline of 1.2 percent. Excluding transportation, new factory orders have declined 3.4 percent since May 2015. This suggests broader softness for manufacturers in terms of demand, perhaps highlighting why business leaders in the sector continue to be so cautious. Read More