Factory Orders – November 2008

Factory Orders At a Glance

• New Orders: $384.6 billion
• Monthly Change: Down 4.6%
• Shipments: $393.8 billion
• Monthly Change: Down 5.3%
• Inventories: $553.4 billion
• Monthly Change: Down 0.3%

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HIGHLIGHTS FROM THE PRELIMINARY REPORT ON MANUFACTURERS’ SHIPMENTS, INVENTORIES, AND ORDERS

Summary
New orders for manufactured goods in November, down four consecutive months, decreased $18.7 billion or 4.6 percent to $384.6 billion, the U.S. Census Bureau reported today. This followed a 6.0 percent October decrease. Excluding transportation, new orders decreased 4.2 percent. Shipments, also down four consecutive months, decreased $22.1 billion or 5.3 percent to $393.8 billion. This was the largest percent decrease since the series was first published on a NAICS basis in 1992 and followed a 3.6 percent October decrease. Unfilled orders, down two consecutive months, decreased $5.3 billion or 0.6 percent to $815.4 billion. This followed a 0.9 percent October decrease. The unfilled orders-to-shipments ratio was 5.82, up from 5.69 in October. Inventories, down three consecutive months, decreased $1.6 billion or 0.3 percent to $553.4 billion. This followed a 0.6 percent October decrease. The inventories-to-shipments ratio was 1.41, up from 1.33 in October.
New Orders
New orders for manufactured durable goods in November, down four consecutive months, decreased $2.8 billion or 1.5 percent to $185.7 billion, revised from the previously published 1.0 percent decrease. This followed an 8.5 percent October decrease.
New orders for manufactured nondurable goods decreased $15.9 billion or 7.4 percent to $198.9 billion.
Shipments
Shipments of manufactured durable goods in November, down four consecutive months, decreased $6.2 billion or 3.1 percent to $194.9 billion, revised from the previously published 2.6 percent decrease. This followed a 3.4 percent October decrease.
Shipments of manufactured nondurable goods, down four consecutive months, decreased $15.9 billion or 7.4 percent to $198.9 billion. This was also the largest percent decrease since the series was first stated on a NAICS basis in 1992 and followed a 3.8 percent October decrease. This decrease was led by petroleum and coal products, which decreased $9.9 billion or 21.0 percent to $37.1 billion. Petroleum and coal products also had the largest percent decrease since the series was first stated on a NAICS basis in 1992.
Unfilled Orders
Unfilled orders for manufactured durable goods in November, down two consecutive months, decreased $5.3 billion or 0.6 percent to $815.4 billion, unchanged from the previously published decrease. This followed a 0.9 percent October decrease.
Inventories
Inventories of manufactured durable goods in November, up sixteen of the last seventeen months, increased $1.5 billion or 0.4 percent to $342.7 billion, revised from the previously published 0.5 percent increase. This was at the highest level since the series was first stated on a NAICS basis in 1992 and followed a 0.4 percent October increase.
Inventories of manufactured nondurable goods, down three consecutive months, decreased $3.1 billion or 1.4 percent to $210.8 billion. This followed a 2.2 percent October decrease. Petroleum and coal products led the decrease, down $2.4 billion or 7.0 percent to $32.3 billion.
By stage of fabrication, November materials and supplies increased 0.4 percent in durable goods and decreased 2.9 percent in nondurable goods. Work in process increased 1.3 percent in durable goods and decreased 2.3 percent in nondurable goods. Finished goods decreased 0.5 percent in durable goods and 0.1 percent in nondurable goods.

Source: Commerce Department, Census Bureau