I have to admit, I was briefly taken aback when I first read the headline at CBS News about the durable-goods report released this morning. “Orders jump for most long-lasting factory goods,”it read, and CNBC’s sounded similarly cheery — “Factory Orders Fly Even As Defense in the Dumps.” Why not just report the topline results, I wondered?

This is why:

New orders for manufactured durable goods in January decreased $11.8 billion or 5.2 percent to $217.0
billion, the U.S. Census Bureau announced today. This decrease, down following four consecutive monthly increases, followed a 3.7 percent December increase. Excluding transportation, new orders increased 1.9 percent. Excluding defense, new orders decreased 0.4 percent. Transportation equipment, down three of the last four months, drove the decrease, $14.7 billion or 19.8 percent to $59.7 billion. This was led by defense aircraft and parts, which decreased $5.1 billion.

Transportation is a rather volatile industry, and defense spending has been cut even before the sequester hits. Neither of these are a big surprise in turning negative. However, the report isn’t all that cheery even when looking at the results without each. A rise of 1.9% excluding transportation is positive, but “jump” seems a bit much. Excluding defense and including transportation, orders went down 0.4%, and that’s not impressive at all.

The AP, whose report CBS published, focuses on core capital goods for its sunny disposition:

The Commerce Department says orders for so-called core capital goods, which include machinery, equipment and software, rose 6.3 percent in January from December. A sharp drop in demand for commercial aircraft caused overall durable goods orders to drop 5.2 percent, the steepest since August. …

The increase in core capital goods suggests companies are willing to expand their production capacities despite worries that automatic government spending cuts that kick in Friday will slow the economy in the coming months.

So did CNBC:

A gauge of planned U.S. business spending increased by the most in just over a year in January and new orders for long-lasting manufactured goods excluding transportation rose solidly, pointing to underlying strength in factory activity.

True, but the backlog is also disappearing, while inventories are rising again:

Unfilled Orders. Unfilled orders for manufactured durable goods in January, down following four consecutive monthly increases, decreased $2.1 billion or 0.2 percent to $989.2 billion. This decrease followed a 0.8 percent December increase. Transportation equipment, also down following four consecutive monthly increases, drove the decrease, $5.0 billion or 0.9 percent to $582.8 billion.

Inventories. Inventories of manufactured durable goods in January, up fifteen of the last sixteen months, increased $0.7 billion or 0.2 percent to $374.8 billion. This increase followed a 0.1 percent December decrease. Transportation equipment, up thirty consecutive months, drove the increase, $1.1 billion or 0.9 percent to $115.8 billion.

-snip-

Read more:http://hotair.com/archives/2013/02/27/du...5-2-in-january/

Details, schmetails, Comrade. Don't ignore the good news! "The chocolate ration has been increased from 30 to 25 grams per week."

One of my businesses is doing mfg equipment and plant maintenance for small operations that can't afford professional full time maintenance personnel. Very niche market but lucrative. In the last five years many parts for machine such as common bearings have gone up over 40% in price and they have become hard to get. We used to go to the power transmission distributor and they would have them on the shelf, now many things are factory order only - often 4-6 weeks. This does not bode well for the economy.

I also notice that the nearby six month old WallyWorld has less of everything. They count on overnight deliveries from the warehouse. PITA when I am trying to stock up on oil etc and there are only two jugs in stock. SOOO we order online and have it delivered to the store. Sears outlet is dead. They will jump on you and dry hump your leg for a sale; almost sad. Good time to buy new appliances.