News Column

Durable Goods Orders Took a Dip in December

January 28, 2014

UPI Business News

durable goods
Durable goods orders declined in December (file photo)

Durable goods orders dropped sharply in December 2013, falling 4.3 percent in the month, the U.S. Commerce Department reported Tuesday.

The drop was unexpected. Economists had predicted a gain of 1.8 percent in orders for goods expected to last at least three years.

Fresh orders for long-lasting goods fell in two months out of the final quarter of 2013, dropping 2 percent in October and rising 2.6 percent in November.

Excluding transportation items, new orders dropped 1.6 percent in December. Taking defense orders out of the mix left new durable good orders at a decline of 3.7 percent.

New orders fell by $10.3 billion to $229.3 billion in the month. Most of that was in transportation, where orders fell by $7.7 billion or 9.5 percent to $73.1 billion.

Transportation orders, which includes contracts for trains, trucks, jets and ships can quickly sway the data.

Shipments of durable goods fell after four consecutive gains, slipping by $4.5 billion to $232.8 billion.

Unfilled orders, up 10 of the past 11 months, rose 0.4 percent in the month or by $3.9 billion to nearly $1.062 trillion.

Capital goods orders, which represent businesses investing in themselves, fell 5 percent in the month or by $4.3 billion to $82.5 billion.

Shipments of capital goods rose by 0.8 percent to $75.4 billion, And unfilled capital goods orders rose by 1.1 percent to $642.7 billion, the department said.

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Original headline: Durable goods orders declined in December


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Source: Copyright 2014 United Press International, Inc. (UPI). Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.


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