U.S. factory orders, shipments fall in January

WASHINGTON Thu Mar 6, 2014 10:04am EST

Chevrolet Cruze chassis move along the assembly line at the General Motors Cruze assembly plant in Lordstown, Ohio July 22, 2011 file photo. REUTERS/Aaron Josefczyk

Chevrolet Cruze chassis move along the assembly line at the General Motors Cruze assembly plant in Lordstown, Ohio July 22, 2011 file photo.

Credit: Reuters/Aaron Josefczyk

WASHINGTON (Reuters) - New orders for U.S. factory goods fell more than expected in January and shipments also slipped, adding to signs of a recent slowdown in manufacturing activity.

The Commerce Department said on Thursday new orders for manufactured goods declined 0.7 percent. December's orders were revised to show a 2.0 percent drop instead of the previously reported 1.5 percent fall.

Economists polled by Reuters had forecast new orders received by factories slipping 0.4 percent. Shipments of new orders fell for a second month in January.

Factory activity is cooling as businesses place fewer orders while working through stocks of unsold goods. Unseasonably cold weather, which has weighed on activity ranging from home building to hiring, is also a drag on manufacturing.

Factory orders fell across most categories, with big declines in transportation, primary metals and electrical equipment, appliances and components. Orders for machinery also fell.

Orders excluding the volatile transportation category rose 0.2 percent, reflecting gains in defense capital goods and in computers and electronic products.

The department also said orders for durable goods, manufactured products expected to last three years or more, fell 1.0 percent as reported last month. Durable goods orders excluding transportation were up 1.1 percent as previously reported.

Orders for non-defense capital goods excluding aircraft - seen as a measure of business confidence and spending plans - increased 1.5 percent rather than the previously reported 1.7 percent advance.

(Reporting by Lucia Mutikani; Edited by Andrea Ricci)

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Comments (1)
Everyday Joe here. Just wanted to say that the weather does not factor in to if and when I purchase a new vehicle or a gallon of milk. While blaming the weather on low car sales and high inventory might be true, I have my doubts.

Mar 06, 2014 10:44am EST  --  Report as abuse
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