New Orders Fall 3.9% in December

New orders for manufactured goods in December, down five consecutive months, decreased $14.8 billion or 3.9% to $362.4 billion, the U.S. Census Bureau reported in the preliminary report on Manufacturers' Shipments, Inventories and Orders.
 
This was the longest streak of consecutive monthly decreases since the series was first published on a NAICS basis in 1992 and followed a 6.5% November decrease. Excluding transportation, new orders decreased 4.4%.
 
Shipments, also down five consecutive months, decreased $11.3 billion or 2.9% to $377.6 billion. This was the longest streak of consecutive monthly decreases since March-July 1998 and followed a 6.5% November decrease. Unfilled orders, down three consecutive months, decreased $11 billion or 1.4% to $801.9 billion. This followed a 0.9% November decrease.
 
The unfilled orders-to-shipments ratio was 5.82, down from 5.87 in November. Inventories, down four consecutive months, decreased $8.0 billion or 1.4% to $544.3 billion. This was the largest% decrease since the series was first published on a NAICS basis in 1992 and followed a 0.5% November decrease. The inventories-to-shipments ratio was 1.44, up from 1.42 in November.
 
New Orders
New orders for manufactured durable goods in December, down five consecutive months, decreased $5.4 billion or 3% to $175.6 billion, revised from the previously published 2.6% decrease.
 
New orders for manufactured nondurable goods decreased $9.4 billion or 4.8% to $186.8 billion.
 
Shipments
Shipments of manufactured durable goods in December, down five consecutive months, decreased $1.9 billion or 1.0% to $190.8 billion, revised from the previously published 0.7% decrease. This followed a 4.2% November decrease.
 
Shipments of manufactured nondurable goods, down five consecutive months, decreased $9.4 billion or 4.8% to $186.8 billion. This followed an 8.7% November decrease. This decrease was led by petroleum and coal products, which decreased $6.5 billion or 18.2% to $29.3 billion.
 
Unfilled Orders
Unfilled orders for manufactured durable goods in December, down three consecutive months, decreased $11.0 billion or 1.4% to $801.9 billion, revised from the previously published 1.3% decrease. This followed a 0.9% November decrease.
 
Inventories
Inventories of manufactured durable goods in December, up seventeen of the last eighteen months, increased $1.2 billion or 0.4% to $343.5 billion, unchanged from the previously published increase. This was at the highest level since the series was first stated on a NAICS basis in 1992 and followed a 0.3% November increase.
 
Inventories of manufactured nondurable goods, down four consecutive months, decreased $9.2 billion or 4.4% to $200.8 billion. This also was the largest% decrease since the series was first published on a NAICS basis in 1992 and followed a 1.8% November decrease. Petroleum and coal products led the decrease, down $5.2 billion or 16.2% to $26.8 billion.
 
By stage of fabrication, December materials and supplies decreased 0.6% in durable goods and 4.8% in nondurable goods. Work in process increased 2.0% in durable goods and decreased 3.3% in nondurable goods. Finished goods decreased 0.6% in durable goods and 4.5% in nondurable goods.