The U.S. Census Bureau announced the March full report on manufacturers’ shipments, inventories and orders.
Factory orders in the U.S. sank 10.3% in March as the coronavirus pandemic began to shut down large parts of the economy. Durable goods orders fell 14.7%, a bit higher than the prior estimate of 14.4%, the Commerce Department said Monday.
Summary
New orders for manufactured goods in March, down four of the last five months, decreased $51.0 billion or 10.3 percent to $445.8 billion, the U.S. Census Bureau reported today. This followed a 0.1 percent February decrease. Shipments, down three consecutive months, decreased $26.2 billion or 5.2 percent to $473.6 billion. This followed a 0.3 percent February decrease. Unfilled orders, down following three consecutive monthly increases, decreased $23.6 billion or 2.0 percent to $1,134.9 billion. This followed a 0.1 percent February increase. The unfilled orders-to-shipments ratio was 6.57, down from 6.62 in February. Inventories, down three consecutive months, decreased $5.8 billion or 0.8 percent to $693.5 billion. This followed a 0.4 percent February decrease. The inventories-to-shipments ratio was 1.46, up from 1.40 in February.
New Orders
New orders for manufactured durable goods in March, down following three consecutive monthly increases, decreased $36.6 billion or 14.7 percent to $212.6 billion, down from the previously published 14.4 percent decrease. This followed a 1.1 percent February increase. Transportation equipment, down two of the last three months, led the decrease, $35.9 billion or 41.3 percent to $50.9 billion. New orders for manufactured nondurable goods decreased $14.4 billion or 5.8 percent to $233.2 billion.
Shipments
Shipments of manufactured durable goods in March, down eight of the last nine months, decreased $11.8 billion or 4.7 percent to $240.4 billion, down from the previously published 4.5 percent decrease. This followed a 0.8 percent February increase. Transportation equipment, also down eight of the last nine months, led the decrease, $11.1 billion or 13.0 percent to $74.0 billion. Shipments of manufactured nondurable goods, down three consecutive months, decreased $14.4 billion or 5.8 percent to $233.2 billion. This followed a 1.3 percent February decrease. Petroleum and coal products, also down three consecutive months, drove the decrease, $15.5 billion or 30.3 percent to $35.6 billion.
Unfilled Orders
Unfilled orders for manufactured durable goods in March, down following three consecutive monthly increases, decreased $23.6 billion or 2.0 percent to $1,134.9 billion, unchanged from the previously published decrease. This followed a 0.1 percent February increase. Transportation equipment, also down following three consecutive monthly increases, led the decrease, $23.0 billion or 2.9 percent to $768.1 billion.
Inventories
Inventories of manufactured durable goods in March, up eighteen of the last nineteen months, increased $2.8 billion or 0.6 percent to $437.4 billion, unchanged from the previously published increase. This followed a virtually unchanged February increase. Transportation equipment, up twenty of the last twenty-one months, led the increase, $0.9 billion or 0.6 percent to $152.7 billion. Inventories of manufactured nondurable goods, down three consecutive months, decreased $8.6 billion or 3.2 percent to $256.1 billion. This followed a 1.0 percent February decrease. Petroleum and coal products, also down three consecutive months, led the decrease, $7.5 billion or 19.7 percent to $30.8 billion. By stage of fabrication, March materials and supplies increased 0.7 percent in durable goods and decreased 1.8 percent in nondurable goods. Work in process increased 1.1 percent in durable goods and decreased 6.6 percent in nondurable goods. Finished goods were virtually unchanged in durable goods and decreased 2.9 percent in nondurable goods.