Electronics shipments from U.S. factories fell 0.5 percent in November after a 2.5 percent rise in October. With rapidly declining prices this was about a steady month for unit volume sales.

The month-to-month declines were 2.4 percent for computer, peripherals and storage, 1.4 percent for telecom equipment and 0.4 percent for semiconductors. November industry shipments were 2.1 percent above September. This translates into a 14 percent annualized growth rate, still on track with the average expected growth pace through 2004.

The more volatile orders fell 10.8 percent in November, reversing the rise in the previous two months; orders are still 9.8 percent higher than a year ago. Unfilled orders and inventory were steady. Telecom equipment orders plunged 40 percent reversing a huge early fall rise but unfilled orders remained nearly 16 percent higher than a year ago.

End market results were disappointing. Excluding electronics, shipments increased only 0.2 percent and orders slipped 1 percent after several much stronger months. The weak November activity is probably no more than a pause following the surge in capital equipment demand a few months earlier, when the 2004 economic outlook was marked up by most manufacturers.

Three other November manufacturing reports were much stronger. This includes the Institute for Supply Management survey of industrial buyers, with the largest gain in the index in several years, the Federal Reserve Board¡¯s measure of production, up 0.8 percent, and the employment survey report of a 0.3 percent increase in hours worked in manufacturing.

By: DocMemory
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