Third consecutive month of decline in transportation equipment

New orders for American manufactured durable goods declined US$1.9 billion or 0.7 per cent to US$268.2 billion in December.

This follows a 3.2 per cent gain in November.

Transportation equipment fell US$3.1 billion or 3.7 per cent to US$80.3 billion in three of the past four months to US$262.5 billion.

The US Census Bureau reports that new orders for manufactured non-durable products declined by US$0.5 billion, or 0.2 per cent to US$262.5 billion. Shipments of manufactured durable goods grew US$2.6 billion or 1.0 per cent to US$266.4 billion in December, up seven of the last eight months, above the previously reported 0.8 per cent gain.

This follows a 0.8 per cent gain in November. Shipments of manufactured non-durable products declined US$0.5 billion or 0.2 per cent to US$262.5 billion, following nine consecutive months of growth. This is coming from a 0.5 per cent gain in November.

Petroleum and coal products decreased US$1.2 billion or 2.1 per cent to US$56.6 billion, following seven consecutive monthly rises. Unfilled orders for manufactured durable goods climbed US$6.2 billion or 0.5 per cent to US$1.26 trillion in December, unchanged to the previously announced rise.

Growth in inventories in December

Inventories of manufactured durable goods rose US$3.5 billion or 0.8 per cent to US$473.9 billion in December, above the previously reported 0.7 per cent rise. This came after a 0.8 per cent gain in November.

Machinery, which has increased for 14 straight months, led the rise, which totaled US$78.5 billion, up US$0.9 billion or 1.1 per cent. Inventories of manufactured non-durable goods declined US$1.3 billion or 0.4 per cent to US$299.1 billion, following 14 consecutive monthly rises.

This follows a 0.8 per cent gain in November.

Petroleum and coal products decreased US$2.9 billion or 6.3 per cent to US$43.2 billion, following seven consecutive monthly rises.

By stage of fabrication, December materials and supplies grew 1.0 per cent in durable items and declined 1.4 per cent in non-durable goods. For durable goods, work in process climbed by 0.8 per cent, while non-durable goods had a 1.2 per cent decline.

Finished durable goods climbed by 0.3 per cent, while finished non-durable items increased by 0.6 per cent.