Subscribe to our free, weekly email newsletter!


MAPI comments on durable goods report

Aircraft orders, primary metals, and computer and electronic products industries down, but business machinery sharply up.
By Modern Materials Handling Staff
February 27, 2013

The U.S. Census Bureau report on durable goods shows that new orders for durable goods fell 5.2 percent in January 2013 after posting a 3.7 percent gain in December 2012, noted Daniel Meckstroth, chief economist for the Manufacturers Alliance for Productivity and Innovation (MAPI). “Durable goods orders are erratic and volatile; they are a mixture of very expensive, long lead-time products and categories that are short order, so order growth by industry is important. The January report is a good example of the negative top line failing to reflect the positive impact of order activity on near-term production.

“The primary reason for the decline in durable goods orders is the severe decline in both civilian and military aircraft orders. Defense aircraft orders fell 63.8 percent and civilian aircraft orders dropped 34 percent in January 2013 from December 2012,” Meckstroth added. “The federal budget sequester undoubtedly played a part in lower military aircraft orders and the battery problem with the Boeing 787 aircraft likely had some role fewer civilian aircraft orders. In both cases, the several-year lead time for aircraft will not affect current activity. Primary metals and computer and electronic products industry orders also fell in January. Importantly, however, orders for business machinery increased a large 13.5 percent.

“A key indicator for business equipment spending is orders for nondefense capital goods excluding aircraft,” Meckstroth concluded. “The indicator increased 6.3 percent in January and is a welcome sign that businesses are not completely put off by the political budget deadline gamesmanship in Washington. Business equipment spending growth is an important element in sustaining the economic expansion.”

Subscribe to Modern Materials Handling magazine

Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Recent Entries

20-year employee also serves on the executive board of the Industrial Truck Association.

The index ISM uses to measure non-manufacturing growth—known as the NMI—was 55.7 in April (a level of 50 or higher indicates growth), which was up 1.2 percent compared to March, with economic activity in the non-manufacturing sector growing for the 75th consecutive month. The April PMI is 0.5 percent above the 12-month average of 56.2.

Inventory donations protect brands, avoid waste and support schools, churches, government agencies and other nonprofit organizations.

Robotics is the fastest growing industrial sector for PCs, followed by materials-handling equipment.

Acquisition to expand pharmaceutical packaging capabilities and integrated solution offering.

Article Topics

News · Economy · MAPI · All topics

About the Author

Josh Bond, Senior Editor
Josh Bond is Senior Editor for Modern, and was formerly Modern’s lift truck columnist and associate editor. He has a degree in Journalism from Keene State College and has studied business management at Franklin Pierce University.


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA