New orders of manufactured goods fell 1.6% in February

New orders for manufactured durable goods declined 1.6%, or by $4.2 billion, to $250.6 billion in February, from January, according to the U.S. Census Bureau. The decrease followed three consecutive months of increases, including a 0.1% rise in January.

Excluding transportation, new orders rose 0.1% in February. Excluding defense, new orders declined 1.9%. Transportation equipment orders decreased 4.8%, or by $4.3 billion, to $86 billion and drove the decrease, following three consecutive monthly increases.

Shipments of manufactured durable goods increased 0.2%, or by $500 million, to $258.6 billion in February, and the shipments have risen in three of the past four months. The increase followed a 0.4% decrease in January. Computers and electronic products shipments rose 1.1%, or by $300 million, to $28 billion and led the rise, up four of the past five months.

Unfilled orders for manufactured durable goods decreased 0.3%, or by $3.6 billion, to $1.18 trillion in February, and was down four of the past five months, following a 0.1% increase in January. Unfilled orders for transportation equipment decreased 0.5%, or by $3.8 billion, to $807.2 billion and drove the decrease, down four of the past five months.

Inventories of manufactured durable goods increased 0.3%, or by $1.3 billion, to $418.9 billion in February, and the inventories have increased in 25 of the past 26 months. The increase followed a 0.5% increase in January. Inventories of transportation equipment increased 1%, or by $1.3 billion, to $134.1 billion and drove the rise, up five of the past six months.

Nondefense new orders for capital goods declined 6.3%, or by $5 billion, to $74.5 billion in February. Shipments increased 0.6%, or by $500 million, to $78.9 billion. Unfilled orders declined 0.6%, or by $4.4 billion, to $705.7 billion. Inventories increased 0.3%, or by $500 million, to $183.6 billion. Defense new orders for capital goods decreased 3.4%, or by $400 million, to $12.2 billion. Shipments decreased 5.3%, or by $700 million, to $12.3 billion. Unfilled orders fell 0.1%, or by $100 million, to $156 billion. Inventories were flat at $22.9 billion.