2004 increase in durable-goods demand highest in 10 years

In December, new orders for manufactured durable goods, items made to last three years or more, increased $1.2 billion or 0.6 percent to $200.3 billion, the Department of Commerce, U.S. Census Bureau reported today. This followed a 1.8 percent November increase. For 2004 as a whole, durable goods orders advanced 10.9 percent, the largest rise in 10 years.

Shipments of manufactured durable goods in December increased $4.2 billion or 2.1 percent to $204.5 billion and was at the highest level since the series was first stated on a NAICS basis in 1992. This followed a 0.1 percent November increase.

Unfilled orders for manufactured durable goods in December, up sixteen of the last seventeen months, increased $2.8 billion or 0.5 percent to $551.9 billion and was also at the highest level since the series began in 1992. This followed a 1.1 percent November increase.

Inventories of manufactured durable goods in December, down following twelve consecutive increases, decreased $0.1 billion to $282.5 billion. This followed a 0.9 percent November increase.

Excluding transportation, orders increased 2.1 percent, the first increase since September and ahead of forecasts for a 1 percent gain. Non-defense orders rose 1.2 percent, surpassing forecasts.