November: Durable Goods orders drop 1.3%, Consumer Spending up .4%, Savings down to 5.3%, Capital Goods down 6.8%
Posted by iusbvision on December 29, 2010
Welcome to our flat-lining economy. Up a little here, down a little there. Some numbers creeping up for a few months to flat-line again. This is what regulatory uncertainty, a loss of confidence and even fear of over reaching government does to an economy.
New orders for manufactured durable goods in November decreased $2.6 billion or 1.3 percent to $193.7 billion, the U.S. Census Bureau announced today. This decrease, down three of the last four months, followed a 3.1 percent October decrease. Excluding transportation, new orders increased 2.4 percent. Excluding defense, new orders decreased 2.3 percent.
Transportation equipment, also down three of the last four months, had the largest decrease, $6.2 billion or 11.9 percent to $45.5 billion. This was due to nondefense aircraft and parts, which decreased $6.6 billion.
Shipments of manufactured durable goods in November, also down three of the last four months, decreased $0.7 billion or 0.3 percent to $195.8 billion. This followed a 1.0 percent October decrease.
Transportation equipment, down four consecutive months, had the largest decrease, $1.6 billion or 3.3 percent to $46.5 billion.
Unfilled orders for manufactured durable goods in November, up ten of the last eleven months, increased $3.4 billion or 0.4 percent to $825.7 billion. This followed a 0.7 percent October increase.
Machinery, up ten consecutive months, had the largest increase, $2.1 billion or 2.0 percent to $106.3 billion.
[Gotta hire people to make the less common models – not happening – Editor]
Inventories of manufactured durable goods in November, up eleven consecutive months, increased $1.9 billion or 0.6 percent to $319.1 billion. This followed a 0.6 percent October increase.
Transportation equipment, also up eleven consecutive months, had the largest increase, $1.1 billion or 1.3 percent to $84.3 billion.
Non-defense new orders for capital goods in November decreased $4.9 billion or 6.8 percent to $66.1 billion. Shipments decreased slightly to $64.8 billion. Unfilled orders increased $1.3 billion or 0.3 percent to $505.3 billion. Inventories increased $0.7 billion or 0.5 percent to $135.2 billion. [This number hurts. Capital goods are tools and equipment used for making things and doing big things, like making or expanding factories. It takes investors money to buy these things. – Editor]
The Commerce Department said spending rose 0.4 percent after increasing by an upwardly revised 0.7 percent in October. Economists polled by Reuters had expected spending, which accounts for about 70 percent of U.S. economic activity, to rise 0.5 percent last month after a previously reported 0.4 percent gain in October.
The report also showed the Federal Reserve’s preferred measure of consumer inflation — the personal consumption expenditures priceindex, excluding food and energy — rose 0.1 percent after being flat for four straight months. In the 12 months through November, the core PCE index rose 0.8 percent, the same margin as in October and still the smallest year-on-year gain since records started in 1960. [There is little confidence in the Federal Reserves method of measuring inflation any more as some in the media and politicians are now openly mocking it. In short, no inflation my ear… – Editor]
The gains in spending were the latest to suggest an acceleration in the growth pace this quarter after output increased at a 2.6 percent annualized rate in the July-September period.
Spending was supported by a 0.3 percent increase in incomes, which was slightly more than the 0.2 percent rise that economists had expected. Incomes rose 0.4 percent in October. Consumers also dipped into their savings to fund purchases. [Incomes are up largely because temp hiring is up. Temps get no benefits so they tend to get higher wages – Editor]
Spending adjusted for inflation rose 0.3 percent after advancing 0.5 percent in October. The seventh straight month of gains bolstered views the spending pace gathered momentum in the current quarter after growing at a 2.4 percent rate in the July-September period. [Whoa now look at that .3% number. So if consumer spending went up .4% and adjusted for inflation the number is .3% that means 25% of the increase in consumer spending was inflation, of which the Federal Reserve says is super low. This is another example of how Sarah Palin was way out ahead of this one. Those in the elite media who mock her have not been paying much attention as she has been making predictions in several policy areas way out ahead of everyone else, getting mocked for it, but being proved correct again and again. – Editor]
The savings rate slipped to 5.3 percent last month, the smallest since March, from 5.4 percent in October. Savings dropped to $614.8 billion, the lowest level since March.