Orders and shipments of manufactured goods fell in November following a significant increase the month before.
On Tuesday, the U.S. Commerce department reported new orders dropped 0.8% compared to October, which posted a 1.4% increase. Year to date, new orders for 2002 are 1.1% below the same period a year ago.
Shipments decreased 0.8%, following a 1.2% October increase. Year to date, shipments for 2002 are 1.3% below the same period a year ago.
Newport Communications Senior Economist Jim Haughey said the decline was almost entirely in motor vehicles.
"Auto market activity has bounced up and down, month-by-month, by as much as 10%, as the marketing push is accelerated or subsides. But it finished the year 5.5% up from 2001. With December auto sales up 15% from a weak November, production is already rebounding," he said.
New orders for manufactured durable goods in November fell 1.5%, revised from the previously published 1.4% decrease, while new orders for manufactured nondurable goods fell 0.1%.
Shipments of manufactured durable goods in November fell 1.4%, revised from the previously published 1.3% decrease, while shipments of manufactured nondurable goods dropped 0.1%.
"Heavy truck shipments plunged 27%, about back to the 2001 recession level, as many buyers pick from the inventory of pre-Oct. 1st trucks to avoid feared problems with the newly designed diesel engines," said Haughey. "Heavy truck inventories were about in balance at the end of September but has since fallen 12.5%."
Haughey said manufacturing is set to get a boost soon from the currency markets because the on-again, off-again depreciation of the dollar has recently been with the dollar falling more than 5% against the Euro and the yen since Dec. 1.
"Europe and Japan are our third- and fourth-largest markets, but are relatively more important for capital goods exporters. The dollar was unchanged with Canada, our largest export market. But the dollar rose 4% against a troubled Mexican currency in our second largest export market and that is very important for consumer goods exporters," he said.
On Tuesday, the U.S. Commerce department reported new orders dropped 0.8% compared to October, which posted a 1.4% increase. Year to date, new orders for 2002 are 1.1% below the same period a year ago.
Shipments decreased 0.8%, following a 1.2% October increase. Year to date, shipments for 2002 are 1.3% below the same period a year ago.
Newport Communications Senior Economist Jim Haughey said the decline was almost entirely in motor vehicles.
"Auto market activity has bounced up and down, month-by-month, by as much as 10%, as the marketing push is accelerated or subsides. But it finished the year 5.5% up from 2001. With December auto sales up 15% from a weak November, production is already rebounding," he said.
New orders for manufactured durable goods in November fell 1.5%, revised from the previously published 1.4% decrease, while new orders for manufactured nondurable goods fell 0.1%.
Shipments of manufactured durable goods in November fell 1.4%, revised from the previously published 1.3% decrease, while shipments of manufactured nondurable goods dropped 0.1%.
"Heavy truck shipments plunged 27%, about back to the 2001 recession level, as many buyers pick from the inventory of pre-Oct. 1st trucks to avoid feared problems with the newly designed diesel engines," said Haughey. "Heavy truck inventories were about in balance at the end of September but has since fallen 12.5%."
Haughey said manufacturing is set to get a boost soon from the currency markets because the on-again, off-again depreciation of the dollar has recently been with the dollar falling more than 5% against the Euro and the yen since Dec. 1.
"Europe and Japan are our third- and fourth-largest markets, but are relatively more important for capital goods exporters. The dollar was unchanged with Canada, our largest export market. But the dollar rose 4% against a troubled Mexican currency in our second largest export market and that is very important for consumer goods exporters," he said.
Read more about
Economy
media brand
0 Comments
See all comments