U.S. Posts Decline in Durable Goods Orders
Orders for manufactured durable goods — a key gauge tracking changes in the value of new purchase commitments to factories — declined by $4.3 billion, or 0.7%, to $617.5 billion in December. The drop reversed a 2.7% rise recorded in November and marked the second monthly decrease in the past three months.
Despite the decline in new orders, shipments continued to edge higher. Deliveries increased by $3.1 billion, or 0.5%, reaching $609.2 billion. Shipments have now advanced in two of the last three months.
Backlogs also expanded. Unfilled orders climbed by $13.4 billion to $1.52 trillion in December, extending gains in 17 of the previous 18 months — a sign that demand in the production pipeline remains elevated.
Inventories rose for a third straight month, increasing by $1 billion to $949.6 billion. Meanwhile, the inventories-to-shipments ratio eased slightly to 1.56 in December from 1.57 in November.
Factory orders data are closely watched as a leading indicator of near-term industrial activity. The manufacturing sector remains a critical pillar of the U.S. economy, making shifts in order volumes a key signal for broader growth trends.
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