HIGHLIGHTS FROM THE PRELIMINARY REPORT ON MANUFACTURERS' SHIPMENTS, INVENTORIES, AND ORDERS

October 2008 --------------- Released 10:00 A.M. EST December 4, 2008
(M3-2(08)-10)
Note: All figures in text are in seasonally adjusted current dollars
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Summary

New orders for manufactured goods in October, down three consecutive months, decreased $21.9 billion or 5.1 percent to $407.4 billion, the U.S. Census Bureau reported today. This followed a 3.1 percent September decrease. Excluding transportation, new orders decreased 4.2 percent. Shipments, also down three consecutive months, decreased $13.8 billion or 3.2 percent to $417.7 billion. This followed a 3.1 percent September decrease. Unfilled orders, down for the first time in twenty-six months, decreased $5.1 billion or 0.6 percent to $823.1 billion. This followed a 0.2 percent September increase. The unfilled orders-to-shipments ratio was 5.69, up from 5.50 in September. Inventories, down two consecutive months, decreased $3.2 billion or 0.6 percent to $555.1 billion. This followed a 0.8 percent September decrease. The inventories-to-shipments ratio was 1.33, up from 1.29 in September.

New Orders

New orders for manufactured durable goods in October, down three consecutive months, decreased $14.3 billion or 6.9 percent to $191.7 billion, revised from the previously published 6.2 percent decrease. This followed a slight September decrease.

New orders for manufactured nondurable goods decreased $7.6 billion or 3.4 percent to $215.6 billion.

Shipments

Shipments of manufactured durable goods in October, down three consecutive months, decreased $6.2 billion or 3.0 percent to $202.1 billion, revised from the previously published 2.4 percent decrease. This followed a slight September decrease.

Shipments of manufactured nondurable goods, down three consecutive months, decreased $7.6 billion or 3.4 percent to $215.6 billion. This followed a 5.8 percent September decrease. This decrease was led by petroleum and coal products, which decreased $6.5 billion or 12.2 percent to $47.2 billion.

Unfilled Orders

Unfilled orders for manufactured durable goods in October, down for the first time in twenty-six months, decreased $5.1 billion or 0.6 percent to $823.1 billion, unchanged from the previously published decrease. This followed a 0.2 percent September increase.

Inventories

Inventories of manufactured durable goods in October, up fifteen of the last sixteen months, increased $1.5 billion or 0.4 percent to $341.3 billion, unchanged from the previously published increase. This was at the highest level since the series was first stated on a NAICS basis in 1992 and followed a 0.2 percent September increase.

Inventories of manufactured nondurable goods, down two consecutive months, decreased $4.7 billion or 2.1 percent to $213.9 billion. This followed a 2.3 percent September decrease. Petroleum and coal products drove the decrease, down $4.8 billion or 12.0 percent to $35.1 billion.

By stage of fabrication, October materials and supplies increased 0.2 percent in durable goods and decreased 3.2 percent in nondurable goods. Work in process increased 1.2 percent in durable goods and decreased 5.5 percent in nondurable goods. Finished goods decreased 0.3 percent in durable goods and increased slightly in nondurable goods.

Released December 4, 2008. Note: All figures in text are in seasonally adjusted current dollars. The advance report on durable goods for November is scheduled for December 24, 2008 at 8:30 a.m. and the full report on January 6, 2009 at 10:00 a.m. For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.

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