U.S. factory orders fall in December; shipments rise further
Source: Reuters
February 3, 2022
10:26 AM EST
Last Updated 3 hours ago
U.S. factory orders fall in December; shipments rise further
Reuters
WASHINGTON, Feb 3 (Reuters) - New orders for U.S.-made goods fell slightly more than expected in December, but manufacturing remains supported by businesses replenishing inventories.
The Commerce Department said on Thursday that factory orders decreased 0.4% in December. Data for November was revised higher to show orders increasing 1.8% instead of 1.6% as previously reported. Economists polled by Reuters had forecast factory orders slipping 0.2%. Orders increased 16.9% in 2021.
Manufacturing, which accounts for 11.9% of the economy, is being underpinned by businesses rebuilding inventories. ... Inventory investment surged at a seasonally adjusted annualized rate of $173.5 billion in the fourth quarter, the second-largest quarterly increase on record.
Most economists see more scope for inventories to rise, noting that inflation-adjusted inventories remain below their pre-pandemic level. Sales-to-inventory ratios are also low. ... Inventories contributed 4.90 percentage points to the fourth quarter's 6.9% annualized growth pace.
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Read more: https://www.reuters.com/business/us-factory-orders-fall-december-shipments-rise-further-2022-02-03/
