U.S. Commerce Department Says Other Manufacturing, Particularly For Defense, Is On The Rise

The U.S. Commerce Department released its monthly report on manufacturing of durable goods on Wednesday, and "transportation", which the report says means mostly aircraft manufacturing and parts, drove the index down. The report also shows an increasing inventory of aircraft waiting to be sold.

According to the report, new orders for manufactured durable goods in November decreased $2.6 billion or 1.3 percent to $193.7 billion, according to the U.S. Census Bureau, which produces the report. This decrease, down three of the last four months, followed a 3.1 percent October decrease. Excluding transportation, new orders increased 2.4 percent. Excluding defense, new orders decreased 2.3 percent.

Transportation equipment, also down three of the last four months, had the largest decrease, $6.2 billion or 11.9 percent to $45.5 billion. This was due to nondefense aircraft and parts, which decreased $6.6 billion.

Shipments of manufactured durable goods in November, also down three of the last four months, decreased $0.7 billion or 0.3 percent to $195.8 billion. This followed a 1.0 percent October decrease. Transportation equipment, down four consecutive months, had the largest decrease, $1.6 billion or 3.3 percent to $46.5 billion.

Inventories of manufactured durable goods in November, up eleven consecutive months, increased $1.9 billion or 0.6 percent to $319.1 billion. This followed a 0.6 percent October increase. Transportation equipment, also up eleven consecutive months, had the largest increase, $1.1 billion or 1.3 percent to $84.3 billion.

FMI: www.commerce.gov