In January 2024, the US manufacturing sector experienced a downturn, with new orders for manufactured goods dropping $21.5 billion or 3.6 per cent to $569.7 billion, marking a decline for three of the last four months, according to the US Census Bureau. This contraction follows a 0.3 per cent decrease in December. Shipments also fell, down $5.7 billion or 1.0 per cent to $572.3 billion, continuing a trend of decline in four of the last five months.

Specifically, new orders for manufactured durable goods plummeted $18.1 billion or 6.2 per cent to $276.3 billion, slightly more severe than the initially reported 6.1 per cent decline. The decrease in January followed a modest 0.3 per cent drop in December. Manufactured nondurable goods weren't spared either, with a decrease of $3.3 billion or 1.1 per cent to $293.4 billion.

The shipments of durable goods fell $2.4 billion or 0.9 per cent to $278.9 billion, maintaining the previously reported rate of decline, while shipments of nondurable goods decreased by the same per centage, totalling a $3.3 billion decline to $293.4 billion.

On a positive note, unfilled orders for durable goods, continuing a strong trend, rose $2.1 billion or 0.2 per cent to $1,395.1 billion, marking an increase for thirteen of the last fourteen months. Similarly, inventories of durable goods saw an uptick of $1.1 billion or 0.2 per cent to $527.4 billion, continuing a six-month increase streak. However, inventories of nondurable goods experienced a decrease of $1.9 billion or 0.6 per cent to $328.4 billion, indicating a decline for four consecutive months.

Fibre2Fashion News Desk (DP)

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New orders in US' manufacturing sector decline 3.6% in January 2024

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