Durable Goods Up 2.7% in January

Feb. 24, 2011
Transportation equipment had the largest increase, $10.9 billion or 27.6% to $50.5 billion

New orders for manufactured durable goods in January increased $5.3 billion or2.7% to $200.5 billion, the U.S. Census Bureau announced on Feb. 24. This increase followed three consecutive monthly decreases including a 0.4% December decrease.

Excluding transportation, new orders decreased 3.6%.

Excluding defense, new orders increased 1.9%.

Transportation equipment, also up following three consecutive monthly decreases, had the largest increase, $10.9 billion or 27.6% to $50.5 billion. This was led by to nondefense aircraft and parts, which increased $7.3 billion.

"A three-month-average ending in January of durable goods orders is 9% above the same period one year ago and the three-month-average of nondefense capital goods excluding aircraft orders is up 16%," said Daniel Meckstroth, Chief Economist for the Manufacturers Alliance/MAPI. "Business equipment spending is the bright spot in the economic outlook now and in the future.

The U.S. economy must transition to a greater role for investment and exports and gradually become less reliant on consumer spending growth for our prosperity. With 100% depreciation of business equipment, strong corporate profits, excessive cash flow, rising capacity utilization rates, and moderate GDP growth there is every reason to expect robust capital spending and business equipment production growth this year."

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!