New Orders Dip 1.0% for Durable Goods

Airplane orders slow again, but other orders clock in solid growth.

Feb 27, 2014 at 11:35AM

New orders for durable goods fell 1% to $225 billion for January, according to a Commerce Department report (link opens as PDF) released today. Much of the decline was driven by a 20.2% drop in demand for commercial aircraft, a volatile month-to-month category. Orders for all transportation-related equipment fell 5.6%. 

After December's 4.3% dip was revised to -5.3%, January's decrease proved slightly better than expected. Overall, analysts had predicted a 1.6% decline. Durable goods are items meant to last at least three years.



Excluding volatile transportation orders (which include aircraft), January's numbers look even better. Analyst expectations called for a slightly more subdued 0.4% decline, but actual orders saw 1.1% growth, meaning that most of the dip was due to transportation. Specifically, nondefense aircraft orders dropped 20.2% as airlines continue to close up shop on new orders.

As overall new orders declined, so did shipments and nondefense new orders for capital goods. Shipments decreased 0.4% for the second straight month of declines, while capital goods took a 3.9% dip.

In a sign of some hope ahead, both unfilled orders and inventories expanded. Unfilled orders edged up 0.1% for 11 months of increases over the last year, while inventories grew 0.3%. Both unfilled orders and inventories stand at their highest levels since data were first collected in 1992.

-- Material from The Associated Press was used in this report.



Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information