New orders for U.S. manufactured goods showed a notable increase in the month of December, according to a report released by the Commerce Department on Monday, although the pace of growth still fell short of economist estimates.
The report showed that factory orders surged up by 1.8 percent in December following a revised 0.3 percent decrease in November.
Economists had expected orders to jump by 2.4 percent compared to the marginal increase originally reported for the previous month.
The increase in factory orders in December was largely due to an 11.7 percent increase in orders for transportation equipment, which came on the heels of a 0.7 percent decrease in November.
Excluding the substantial increase in orders for transportation equipment, factory orders edged up by 0.2 percent in December compared to a 0.2 percent drop in November.
The report also said durable goods orders increased by 4.3 percent in December, reflecting a downward revision from the 4.6 percent growth reported last week.
The increase in orders for durable goods was partly offset by a drop in orders for non-durable goods, which fell by 0.3 percent in December following a 1.0 percent decrease in November.
The Commerce Department also said shipments of manufactured goods rose by 0.4 percent in December after rising by 0.3 percent in November. Shipments have increased in five of the last six months.
Inventories of manufactured goods inched up by 0.1 percent in December following two consecutive monthly decreases.
The report subsequently showed that the inventories-to-shipments ratio came in at 1.27 in December, unchanged from the previous month.
by RTT Staff Writer
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