Toner News Mobile › Forums › Latest Industry News › *NEWS*U.S. FACTORY ORDERS FALL
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AnonymousInactiveJobless Claims Rise, Factory Orders
FallWASHINGTON –
Orders to U.S. factories for big-ticket manufactured goods fell 0.9 percent in
January, the worst showing in three months, as demand for commercial aircraft
fell sharply, the government reported Thursday.
The Commerce Department said that demand for durable
goods, items expected to last three or more years, dropped by $1.7 billion last
month to a seasonally adjusted $200.4 billion. The weakness was led by a 27.1
percent plunge in orders for commercial aircraft.The overall decline was larger than expected, but it
followed two months of strong gains. Orders were up 1.4 percent in December
after an even larger 2 percent rise in November. They fell by 1 percent in
October.In a second report, the
Labor Department said that the number of Americans filing new claims for
unemployment benefits rose by 9,000 to 312,000. The slight increase had been
expected given that weekly claims had been declining in recent weeks. The
four-week moving average of claims, designed to smooth out week-to-week
volatility, dropped by 3,250 to a four-year low of 308,750.Economists said the level of
claims indicates that the job market is continuing to gain strength after a
prolonged stretch of weakness.Analysts had expected some
cooling off in factory orders in January, given that the series is extremely
volatile and there had been strong gains in the previous two months. But the
extent of the decline took them by surprise.The U.S. manufacturing sector
suffered the most in the 2000 recession and has struggled to regain its footing
since that time. Nearly 3 million manufacturing jobs have been lost as U.S.
factories have faced rising competition from foreign competitors.
For January, the big drop in
orders reflected a decline of $2.17 billion in demand for commercial aircraft
and parts, which fell to $5.84 billion last month. The 27.1 percent drop in this
category followed a 16.8 percent decline in December.Orders for autos and auto parts
were also down, dropping 3.8 percent to $38.15 billion. Analysts had expected a
slowdown in this area as auto dealers struggle to reduce a buildup of unsold
cars.Excluding transportation, durable
goods orders rose by 0.8 percent last month following a 2.8 percent surge in
December.Demand for primary metals such as
steel rose by 1.6 percent while demand for kitchen appliances and other
electrical equipment shot up a record 13 percent.Demand for computers and related
electronics products dropped by 1.2 percent while demand for machinery of
various types edged up 0.3 percent.Non-defense capital goods, a
category that is closely tracked because it can reveal business plans to expand
and modernize, edged up a slight 0.2 percent in January after having fallen 0.7
percent in December. -
AuthorFebruary 24, 2005 at 9:34 AM
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