October 2010 Manufacturers’ Shipments, Inventories and New Orders

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Shipments and inventories at the total manufacturing level both posted gains in October, according to the U.S. Census Bureau, but new orders retreated.

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Total shipments, up three of the last four months, increased $1.5 billion (0.3 percent) to $421.0 billion. Shipments of durable goods decreased $1.8 billion (0.9 percent) to $196.6 billion, led by machinery. Nondurable goods shipments more than offset that decline, however, increasing $3.2 billion (1.5 percent) to $224.4 billion. Petroleum and coal products drove the nondurable increase.

Shipments of solid wood products rose by 2.8 percent, while paper products declined by 0.6 percent.
 

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Data from the Association of American Railroads indicated double-digit monthly percentage drops in rail shipments during October. The Ceridian-UCLA Pulse of Commerce Index (which measures diesel consumption of over-the-road trucking) also fell by 0.6 percent. So, although the value of shipments rose in October, the volume of goods shipped appears to have fallen.
 

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Total inventories, up nine of the last ten months, increased $4.7 billion (0.9 percent) to $538.2 billion in October. Durable goods inventories increased $1.5 billion (0.5 percent) to $316.9 billion, led (again) by machinery. Inventories of nondurable goods increased $3.2 billion (1.5 percent) to $221.3 billion; petroleum and coal products drove the nondurable goods increase.

Inventories of wood products dropped by 1.0 percent, but paper products increased by 0.4 percent.
 

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New orders, down following three consecutive monthly increases, decreased $3.6 billion (0.9 percent) to $420.1 billion. Excluding transportation, new orders decreased 0.2 percent. Orders for durable goods decreased $6.9 billion (3.4 percent) to $195.7 billion. Transportation equipment experienced the largest decrease ($2.8 billion or 5.2 percent). Nondurable goods orders increased $3.2 billion (1.5 percent) to $224.4 billion.