Orders from US factories increase less than expected in January

Luke Sharrett | Bloomberg | Getty Images

A factory worker uses an electric drill to bademble the components of a diesel engine at the Seymour Engine Plant of Cummins Inc. in Seymour, Indiana on January 29, 2019.

New orders for products manufactured in the United States grew less than expected in January, which was held back by lower orders for computers and electronic products, another sign of a slowdown in manufacturing activity.

Factory goods orders rose 0.1%, the Commerce Department said Tuesday, as demand for primary metals and metal products declined. This followed an unrevised gain of 0.1% in December.

Economists polled by Reuters forecast a 0.3% rise in factory orders in January. Factory orders increased 3.8% from January 2018.

The release of the report was delayed by a 35-day partial closure of the federal government that ended on January 25.

Reports revealed last Friday that manufacturing output fell for a second consecutive month in February and that factory activity in the state of New York reached its lowest level in two years this month. .

The manufacturing sector, which accounts for about 12% of the economy, is declining as last year 's $ 1.5 trillion cut in stimulus declines. The activity is also hampered by a trade war between the United States and China, as well as by the rising dollar and slowing global economic growth, which weigh on exports.

In January, machinery orders increased 1.5% after a 0.4% decline in December. Machine orders for mining, oil and gas fields fell 2.7% after falling 8.2% in December.

Orders for equipment, appliances and electrical components rebounded 1.4% after declining 0.3% in December. Orders for computers and electronic products declined 0.9%, following a 0.4% decline in December.

Orders for primary metals decreased 2.0% and metal product orders declined 0.6%. Transportation equipment orders rose 1.2% in January, down from 3.2% the previous month.

Orders for civil aircraft and parts increased by 15.6% in January. Orders for vehicles and auto parts increased 0.4%.

The Commerce Department also said that non-defense equipment goods orders in January, other than defense, are considered a measure of business spending on equipment, up 0.8% as indicated last week. Orders for these so-called basic capital goods fell 0.8% in December.

Shipments of basic capital goods, used to calculate management equipment expenditures in the Gross Domestic Product Report, also increased 0.8% in January, as previously reported. Shipments of basic capital goods increased 0.1% in December.