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Business
See other Business Articles Title: Factory Orders Increase For Fifth Consecutive Month In January
Source:
RTTNews
URL Source: http://www.rttnews.com/ArticleView.aspx?Id=1230567&SMap=1
Published: Mar 4, 2010
Author: RTTNews
Post Date: 2010-03-04 14:50:14 by Brian S
Keywords: None
Views: 733
Comments: 14
(RTTNews) - New orders for manufactured goods increased for the fifth consecutive month in January, according to a report released by the Commerce Department on Thursday, with the continued growth due largely to a jump in orders for commercial aircraft.
The report showed that orders for manufactured goods increased by 1.7 percent in January following an upwardly revised 1.5 percent increase in December. Economists had expected orders to increase by 1.8 percent compared to the 1.0 percent growth originally reported for the previous month.
A notable increase in orders for durable goods contributed to the increase in factory orders, with durable goods orders rising by 2.6 percent in January following a 1.8 percent increase in the previous month. The increase is downwardly revised from the 3.0 percent growth reported last week.
Orders for non-durable goods also contributed to the factory orders growth, rising by 0.9 percent in January after increasing by 1.3 percent in December.
As mentioned above, however, the increase in factory orders was largely due to a 118.6 percent increase in orders for commercial aircraft and parts, which resulted in a 15.0 percent increase in orders for transportation equipment.
Excluding the increase in orders for transportation equipment, factory orders edged up by a much more modest 0.1 percent in January compared to a 1.5 percent increase in December.
The report also showed that shipments of manufactured goods rose by 0.3 percent in January after rising by 1.8 percent in December. With the increase, shipments increased for the seventh time in eight months.
Inventories of manufactured goods, up three of the last four months, increased or 0.2 percent in January after falling by 0.2 percent in December.
With inventories and shipments increasing at roughly the same pace, the inventories-to-shipments ratio was unchanged from the previous month at 1.29.
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