Thursday, October 30th5.8°C
23888
22501

US factory orders drop 1.5 per cent, biggest setback since July, as aircraft demand falls

WASHINGTON - U.S. manufacturers saw orders for their products decline in December by the largest amount in five months although the setback for a key category that tracks business investment was not as large as first reported.

Orders to U.S. factories fell 1.5 per cent in December, the biggest drop since July, with much of the weakness coming from a plunge in aircraft orders, the Commerce Department reported Tuesday. Orders had risen 1.5 per cent in November after a 0.5 per cent October decrease.

Orders in a closely watched category that serves as a proxy for business investment declined 0.6 per cent, a smaller fall than the 1.3 per cent drop estimated in a preliminary report last week. The decrease followed a sizable 3 per cent jump in November, an increase spurred by an expiring tax break.

Demand for durable goods, items expected to last at least three years, fell 4.2 per cent, slightly less than the 4.3 per cent preliminary estimate. Orders for nondurable goods such as chemicals, paper and food rose 1.1 per cent in December following a 0.4 per cent November gain.

Analysts say part of the weakness in December reflected a temporary slowdown following a rush to purchase capital goods in November to take advantage of expiring federal tax breaks.

Orders for all of 2013 totalled $5.82 trillion, up 2.5 per cent from 2012, as manufacturing continued to recover from the Great Recession.

For December, demand for commercial aircraft, a volatile category, fell 17.5 per cent after having risen 21.1 per cent in November. While the drop in airplane orders led the declines, there was weakness in a number of categories. Orders for iron and steel fell 10 per cent while demand for construction machinery was down 2.9 per cent and demand for computers and other electronic products fell 6.3 per cent.

The Institute for Supply Management, a trade group of purchasing managers, said Monday that its index of manufacturing activity fell to 51.3 in January from 56.5 in December. It was the lowest reading since May although any reading above 50 signals growth in manufacturing.

The January performance of the ISM index suggests that U.S. manufacturing slowed at the beginning of this year.

Auto sales have decelerated and businesses are spending cautiously on machinery and other large factory goods.

The slowdown could mean that economic growth in the first three months of this year will get less support from manufacturing.

But some economists said that the weak ISM reading may reflect unusually bad weather in January.

The Federal Reserve reported that factory output in December rose for a fifth straight month. Manufacturers produced more cars, trucks and appliances in December.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14456.31-71.261
S&P CDNX773.67-7.40
DJIA17054.1379.82
Nasdaq4532.324-16.902
S&P 5001979.61-2.69
CDN Dollar0.8938-0.0003
Gold1204.10-20.80
Oil80.83-1.13
Lumber324.70+3.10
Natural Gas3.715+0.066

 
Okanagan Companies
Pacific Safety0.12+0.02
Knighthawk0.01-0.005
QHR Technologies Inc1.15+0.02
Cantex0.06-0.01
Anavex Life Sciences0.18-0.012
Metalex Ventures0.03-0.005
Russel Metals32.26-0.31
Copper Mountain Mining1.96-0.06
Colorado Resources0.125-0.01
ReliaBrand Inc0.012-0.004
Sunrise Resources Ltd0.025+0.005
Mission Ready Services0.35-0.02

 





FEATURED Property
2061704#132, 2550 Hollywood Rd N
2 bedrooms 2 baths
$315,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Empty nesting: financial issues

Now that the children have ‘left the nest’, it is a good time to step back and take stock of your financial situation. Being on your own will probably cut household costs to some extent, b...


Keep your haunted home safe

Eerie sounds, spooky lights and Jack-o’-lanterns aglow—extra efforts at Halloween will keep visitors coming back for both tricks and treats. However, to keep the fun going, it’s imp...


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...

_








Member of BC Press Council


22632