{"id":4688,"date":"2015-01-28T12:26:48","date_gmt":"2015-01-28T18:26:48","guid":{"rendered":"http:\/\/news.medill.northwestern.edu\/chicago\/?p=4688"},"modified":"2015-02-26T10:36:00","modified_gmt":"2015-02-26T16:36:00","slug":"manufacturing-oil-durable-goods","status":"publish","type":"post","link":"https:\/\/news.medill.northwestern.edu\/chicago\/manufacturing-oil-durable-goods\/","title":{"rendered":"Durable goods industry slips following strong year for manufacturing"},"content":{"rendered":"

By Bethel Habte<\/p>\n

The manufactured durable goods industry performed below analyst expectations in December, though the decrease followed a strong year for the manufacturing industry.<\/p>\n

According to a report<\/a> by the U.S. Census Bureau, new orders for durable goods decreased by 0.8 percent to $163.8 billion. That number excludes transportation, a volatile segment of the industry. Industry analysts predicted a median 0.6 percent increase.\u00a0The Dow tumbled by more than 340 points nearly two hours after the report\u2019s release.<\/p>\n

Analysts pointed to a number of factors that could account for December’s numbers, including a stronger U.S. dollar hurting exports and hesitation in the global market.<\/p>\n

Excluding defense orders, another notably volatile segment, new orders for capital goods in December decreased $7.9 billion or 9.7 percent to $73.3 billion.<\/p>\n

Inventories of durable goods modestly increased $2 billion, or 0.5 percent, to $410.8 billion. This marked the highest level since the metric began in 1992. Shipments of durable goods increased by $2.6 billion following two consecutive monthly decreases.<\/p>\n

Kim Chase, senior economist for BBVA Research, said that an \u201cextremely strong\u201d third quarter performance for the durable goods industry made it a tough act to follow.<\/p>\n

\u201cIt\u2019s hard to get that strength carryover to the fourth quarter,\u201d she said.<\/p>\n

After taxes, durable goods manufacturers\u2019 seasonally adjusted profits in the third quarter of 2014<\/a> totaled $86.0 billion, up from $77.5 billion in the second quarter of 2014 and $74.8 billion in the third quarter of 2013.<\/p>\n

Morningstar Inc. analyst Robert Johnson noted that the industry began to slow in the fourth quarter.<\/p>\n

\u201cLast year was a banner year,\u201d he said. \u201cI don\u2019t think things are falling apart on durable goods, but things are softening.\u201d<\/p>\n

Though shipments benefited from lower oil prices, oil-related machinery likely suffered, said Jim O\u2019Sullivan, chief economist for High Frequency Economics.<\/p>\n

O\u2019Sullivan noted, however, that using December\u2019s figures for durable goods as a canary for the manufacturing industry could be exaggerating weaknesses.<\/p>\n

\u201cAt the end of the day it\u2019s good to keep in mind to know this is a very volatile market,\u201d he said.<\/p>\n

O\u2019Sullivan opts for the Institute for Supply Management\u2019s monthly purchasing managers index to gauge the manufacturing\u00a0industry. Any number under 50, he said, is cause for concern. ISM\u2019s December reading was 55.5<\/a>. Though the January 2015 number hasn\u2019t been released, O\u2019Sullivan said he\u2019d be surprised if it were below 50.<\/p>\n

Photo at top:\u00a0Manufactured durable goods include cars, washing machines, airplanes and industrial machinery. The U.S. Census Bureau report for December 2014 showed decreases in the durable goods industry, but analysts say the dips were a largely a function of the industry’s volatility. (Bethel Habte\/Medill)<\/div>\n","protected":false},"excerpt":{"rendered":"

By Bethel Habte The manufactured durable goods industry performed below analyst expectations in December, though the decrease followed a strong year for the manufacturing industry.<\/p>\n","protected":false},"author":39,"featured_media":4689,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27,243],"tags":[],"class_list":["post-4688","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-winter-2015"],"yoast_head":"\nDurable goods industry slips following strong year for manufacturing - Medill Reports Chicago<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/news.medill.northwestern.edu\/chicago\/manufacturing-oil-durable-goods\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Durable goods industry slips following strong year for manufacturing - Medill Reports Chicago\" \/>\n<meta property=\"og:description\" content=\"By Bethel Habte The manufactured durable goods industry performed below analyst expectations in December, though the decrease followed a strong year for the manufacturing industry.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/news.medill.northwestern.edu\/chicago\/manufacturing-oil-durable-goods\/\" \/>\n<meta property=\"og:site_name\" content=\"Medill Reports Chicago\" \/>\n<meta property=\"article:published_time\" content=\"2015-01-28T18:26:48+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2015-02-26T16:36:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s3.amazonaws.com\/medill.wordpress.offload\/WP%20Media%20Folder%20-%20medill-reports-chicago\/wp-content\/uploads\/sites\/3\/2015\/01\/FullSizeRender.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1292\" \/>\n\t<meta property=\"og:image:height\" content=\"970\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"bethelhabte\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"bethelhabte\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/manufacturing-oil-durable-goods\/\",\"url\":\"https:\/\/news.medill.northwestern.edu\/chicago\/manufacturing-oil-durable-goods\/\",\"name\":\"Durable goods industry slips following strong year for manufacturing - Medill Reports Chicago\",\"isPartOf\":{\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/manufacturing-oil-durable-goods\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/manufacturing-oil-durable-goods\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/s3.amazonaws.com\/medill.wordpress.offload\/WP%20Media%20Folder%20-%20medill-reports-chicago\/wp-content\/uploads\/sites\/3\/2015\/01\/FullSizeRender.jpg\",\"datePublished\":\"2015-01-28T18:26:48+00:00\",\"dateModified\":\"2015-02-26T16:36:00+00:00\",\"author\":{\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/#\/schema\/person\/367a9a89415f38e2fadcd041e807797e\"},\"breadcrumb\":{\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/manufacturing-oil-durable-goods\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/news.medill.northwestern.edu\/chicago\/manufacturing-oil-durable-goods\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/manufacturing-oil-durable-goods\/#primaryimage\",\"url\":\"https:\/\/s3.amazonaws.com\/medill.wordpress.offload\/WP%20Media%20Folder%20-%20medill-reports-chicago\/wp-content\/uploads\/sites\/3\/2015\/01\/FullSizeRender.jpg\",\"contentUrl\":\"https:\/\/s3.amazonaws.com\/medill.wordpress.offload\/WP%20Media%20Folder%20-%20medill-reports-chicago\/wp-content\/uploads\/sites\/3\/2015\/01\/FullSizeRender.jpg\",\"width\":1292,\"height\":970,\"caption\":\"Manufactured durable goods include cars, washing machines, airplanes and industrial machinery. The U.S. Census Bureau report for December 2014 showed decreases in the durable goods industry, but analysts say the dips were a largely a function of the industry's volatility. (Bethel Habte\/Medill)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/manufacturing-oil-durable-goods\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/news.medill.northwestern.edu\/chicago\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Durable goods industry slips following strong year for manufacturing\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/#website\",\"url\":\"https:\/\/news.medill.northwestern.edu\/chicago\/\",\"name\":\"Medill Reports Chicago\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/news.medill.northwestern.edu\/chicago\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/#\/schema\/person\/367a9a89415f38e2fadcd041e807797e\",\"name\":\"bethelhabte\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/3dafca34370ec28cface4e28eb016335d9a4c70bcbc730242c2c83a857ecd369?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/3dafca34370ec28cface4e28eb016335d9a4c70bcbc730242c2c83a857ecd369?s=96&d=mm&r=g\",\"caption\":\"bethelhabte\"},\"url\":\"https:\/\/news.medill.northwestern.edu\/chicago\/author\/bethelhabte\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Durable goods industry slips following strong year for manufacturing - Medill Reports Chicago","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/news.medill.northwestern.edu\/chicago\/manufacturing-oil-durable-goods\/","og_locale":"en_US","og_type":"article","og_title":"Durable goods industry slips following strong year for manufacturing - Medill Reports Chicago","og_description":"By Bethel Habte The manufactured durable goods industry performed below analyst expectations in December, though the decrease followed a strong year for the manufacturing industry.","og_url":"https:\/\/news.medill.northwestern.edu\/chicago\/manufacturing-oil-durable-goods\/","og_site_name":"Medill Reports Chicago","article_published_time":"2015-01-28T18:26:48+00:00","article_modified_time":"2015-02-26T16:36:00+00:00","og_image":[{"width":1292,"height":970,"url":"https:\/\/s3.amazonaws.com\/medill.wordpress.offload\/WP%20Media%20Folder%20-%20medill-reports-chicago\/wp-content\/uploads\/sites\/3\/2015\/01\/FullSizeRender.jpg","type":"image\/jpeg"}],"author":"bethelhabte","twitter_card":"summary_large_image","twitter_misc":{"Written by":"bethelhabte","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/news.medill.northwestern.edu\/chicago\/manufacturing-oil-durable-goods\/","url":"https:\/\/news.medill.northwestern.edu\/chicago\/manufacturing-oil-durable-goods\/","name":"Durable goods industry slips following strong year for manufacturing - Medill Reports Chicago","isPartOf":{"@id":"https:\/\/news.medill.northwestern.edu\/chicago\/#website"},"primaryImageOfPage":{"@id":"https:\/\/news.medill.northwestern.edu\/chicago\/manufacturing-oil-durable-goods\/#primaryimage"},"image":{"@id":"https:\/\/news.medill.northwestern.edu\/chicago\/manufacturing-oil-durable-goods\/#primaryimage"},"thumbnailUrl":"https:\/\/s3.amazonaws.com\/medill.wordpress.offload\/WP%20Media%20Folder%20-%20medill-reports-chicago\/wp-content\/uploads\/sites\/3\/2015\/01\/FullSizeRender.jpg","datePublished":"2015-01-28T18:26:48+00:00","dateModified":"2015-02-26T16:36:00+00:00","author":{"@id":"https:\/\/news.medill.northwestern.edu\/chicago\/#\/schema\/person\/367a9a89415f38e2fadcd041e807797e"},"breadcrumb":{"@id":"https:\/\/news.medill.northwestern.edu\/chicago\/manufacturing-oil-durable-goods\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/news.medill.northwestern.edu\/chicago\/manufacturing-oil-durable-goods\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/news.medill.northwestern.edu\/chicago\/manufacturing-oil-durable-goods\/#primaryimage","url":"https:\/\/s3.amazonaws.com\/medill.wordpress.offload\/WP%20Media%20Folder%20-%20medill-reports-chicago\/wp-content\/uploads\/sites\/3\/2015\/01\/FullSizeRender.jpg","contentUrl":"https:\/\/s3.amazonaws.com\/medill.wordpress.offload\/WP%20Media%20Folder%20-%20medill-reports-chicago\/wp-content\/uploads\/sites\/3\/2015\/01\/FullSizeRender.jpg","width":1292,"height":970,"caption":"Manufactured durable goods include cars, washing machines, airplanes and industrial machinery. The U.S. Census Bureau report for December 2014 showed decreases in the durable goods industry, but analysts say the dips were a largely a function of the industry's volatility. (Bethel Habte\/Medill)"},{"@type":"BreadcrumbList","@id":"https:\/\/news.medill.northwestern.edu\/chicago\/manufacturing-oil-durable-goods\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/news.medill.northwestern.edu\/chicago\/"},{"@type":"ListItem","position":2,"name":"Durable goods industry slips following strong year for manufacturing"}]},{"@type":"WebSite","@id":"https:\/\/news.medill.northwestern.edu\/chicago\/#website","url":"https:\/\/news.medill.northwestern.edu\/chicago\/","name":"Medill Reports Chicago","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/news.medill.northwestern.edu\/chicago\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/news.medill.northwestern.edu\/chicago\/#\/schema\/person\/367a9a89415f38e2fadcd041e807797e","name":"bethelhabte","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/news.medill.northwestern.edu\/chicago\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/3dafca34370ec28cface4e28eb016335d9a4c70bcbc730242c2c83a857ecd369?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/3dafca34370ec28cface4e28eb016335d9a4c70bcbc730242c2c83a857ecd369?s=96&d=mm&r=g","caption":"bethelhabte"},"url":"https:\/\/news.medill.northwestern.edu\/chicago\/author\/bethelhabte\/"}]}},"_links":{"self":[{"href":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-json\/wp\/v2\/posts\/4688","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-json\/wp\/v2\/comments?post=4688"}],"version-history":[{"count":0,"href":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-json\/wp\/v2\/posts\/4688\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-json\/wp\/v2\/media\/4689"}],"wp:attachment":[{"href":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-json\/wp\/v2\/media?parent=4688"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-json\/wp\/v2\/categories?post=4688"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-json\/wp\/v2\/tags?post=4688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}