News Column

Durable Goods Orders Slipped in January

February 27, 2013
Durable Goods

U.S. durable goods orders declined 5.2 percent in January from December, the U.S. Commerce Department said Wednesday. Orders dropped further than expected as economists had predicted a slide of 4.4 percent.

Orders retreated to $217 billion, off $11.8 billion from December, which had posted the category's fourth consecutive month of increases.

Transportation orders, down for three of the past four months, "drove the decrease," by dropping 19.8 percent ($14.7 billion) from December to $59.7 billion.

Within that segment, defense aircraft orders fell the furthest, dropping $5.1 billion in the month, the report said.

Shipments of durable goods, which are goods expected to last at least three years, dropped by 1.2 percent month to month to $226.1 billion -- a slide that follows a 0.5 percent increase on the previous month.

Inventories rose by 0.2 percent to $374.8 billion, climbing for the 15th month out of the last 16.

Non-defense capital goods orders, a leading economic index, dropped 0.1 percent -- $100 million -- to $72.22 billion.

Capital goods orders represent manufacturing firms investing in themselves by purchasing production equipment. It is viewed as a sign that manufacturers believe production warrants further investment.


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Source: Copyright United Press International 2013


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