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

August 2008 --------------- Released 10:00 A.M. EDT October 2, 2008
(M3-2(08)-08)
Note: All figures in text are in seasonally adjusted current dollars
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(301) 763-4832

Summary

New orders for manufactured goods in August, down following five consecutive monthly increases, decreased $18.6 billion or 4.0 percent to $444.4 billion, the U.S. Census Bureau reported today. This was the largestpercent decrease in new orders since October 2006 and followed a 0.7 percent July increase. Shipments, down following five consecutive monthly increases, decreased $16.4 billion or 3.5 percent to $446.0 billion. This was the largest percent decrease inshipments since September 2006 and followed a 1.4 percent July increase. Unfilled orders, up thirty of the last thirty-one months, increased $3.0 billion or 0.4 percent to $827.2 billion. This was at the highest level since the series was first stated on a NAICS basis in 1992 and followed a 0.8
percent July increase. The unfilled orders-to-shipments ratio was 5.48, up from 5.25 in July. Inventories, up eleven of the twelve months, increased $3.4 billion or 0.6 percent to $562.5 billion. This was also at the highest level since the series was first statedon a NAICS basis in 1992 and followed a 0.6 percent July increase. The inventories-to-shipments ratio was1.26, up from 1.21 in July.

New Orders

New orders for manufactured durable goods in August, down following three consecutive monthly increases,decreased $10.6 billion or 4.8 percent to $207.6 billion,
revised from the previously published 4.5 percent decrease. This followed a 0.7 percent July increase.

New orders for manufactured nondurable goods decreased $8.0 billion or 3.3 percent to $236.8 billion.

Shipments

Shipments of manufactured durable goods in August, down following two consecutive monthly increases, decreased $8.3 billion or 3.8 percent to $209.2 billion,revised from the previously published 3.5 percent decrease. This followed a 2.2 percent July increase.

Shipments of manufactured nondurable goods, down following five consecutive monthly increases, decreased $8.0 billion or 3.3 percent to $236.8 billion. This was the largest percent decrease in nondurable goods shipments since September 2006 and followed a 0.8 percent July increase. This decrease was led bypetroleum and coal products, which decreased $6.0 billion or 8.5 percent to $64.3 billion.

Unfilled Orders

Unfilled orders for manufactured durable goods in August, up thirty of the last thirty-one months, increased $3.0 billion or 0.4 percent to $827.2 billion, unchanged from the previously published increase. This was also at the highest level since the series was first stated on a NAICS basis in 1992 and followed a 0.8 percent July increase.

Inventories

Inventories of manufactured durable goods in August, up thirteen of the last fourteen months, increased $2.7 billion or 0.8 percent to $338.8 billion, revised from the
previously 0.7 percent increase. This was also at the highest level since the series was first stated on a NAICS basis in 1992 and followed a 0.9 percent July increase.

Inventories of manufactured nondurable goods, upnine of the last ten months, increased $0.7 billion or 0.3 percent to $223.6 billion. This followed a 0.2 percentJuly increase. Chemical products led the increase, up $0.7 billion or 1.0 percent to $69.8 billion.

By stage of fabrication, August materials and supplies increased 0.3 percent in durable goods and decreased 0.3 percent in nondurable goods. Work in process increased 1.1 percent in durable goods and 0.4 percent in nondurable goods. Finished goods increased 1.0 percent in durable goods and 0.8 percent in nondurable goods.

Released October 2, 2008. Note: All figures in text are in seasonally adjusted current dollars. The advance report on durable goods for September is scheduled for October 29, 2008 at 8:30 a.m. and the full report on November 4, 2008 at 10:00 a.m. For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.

Our internet address is: http://www.census.gov/m3