Factory Orders Fell Sharply in December

Washington, DC, February 4, 2016—New orders for manufactured goods in December, down four of the last five months, decreased $13.5 billion or 2.9% to $456.5 billion, the U.S. Census Bureau has reported. This followed a 0.7% November decrease.

Shipments, down eight of the last nine months, decreased $6.8 billion or 1.4% to $467.0 billion. This followed a 0.1% November decrease.

Unfilled orders, down following two consecutive monthly increases, decreased $5.8 billion or 0.5% to $1,187.4 billion. This followed a 0.1% November increase. The unfilled orders-to-shipments ratio was 7.11, up from 6.94 in November.

Inventories, up following five consecutive monthly decreases, increased $1.0 billion or 0.2% to $642.3 billion. This followed a 0.3% November decrease. The inventories-to-shipments ratio was 1.38, up from 1.35 in November.

New orders for manufactured durable goods in December, down four of the last five months, decreased $11.8 billion or 5.0% to $225.6 billion, up from the previously published 5.1% decrease. This followed a 0.5% November decrease.

New orders for manufactured nondurable goods decreased $1.7 billion or 0.8% to $230.9 billion.