REPEAT:MNI DATA ANALYSIS:US December Factory Orders Rise 1.7%>

Repeats Story Initially Transmitted at 15:00 GMT Feb 2/10:00 EST Feb 2

--Factory Inventories +0.5%; Business Inventories Tracking +0.3%

By Sara Haire and Holly Stokes

     WASHINGTON (MNI) - The value of new factory orders saw a 1.7% rise 

in December, slightly larger than the expected 1.5% increase in an MNI 

survey, data released by the Commerce Department Friday morning showed. 

     Nondurable goods orders rose 0.7%, while durable goods orders were 

revised down slightly to a 2.8% increase from the 2.9% gain reported in 

the advance estimate.

     Petroleum and coal products shipments were up 1.4% in December, 

leading the increase in nondurables orders. Chemicals (+0.3%), tobacco 

products (+5.7%), and apparel (+1.6%) also contributed to the increase, 

with very few declines reported. Nondurables shipments are equivalent to 

orders in this report. 

     Total factory orders excluding transportation rose 0.7% in 

December, following 1.1% and 1.2% rises in November and October, 

respectively. This increase makes it the seventh consecutive rise. 

Durable goods orders excluding transportation were up 0.7%, revised up 

slightly from the 0.6% increase in the advance estimate. 

     Transportation orders for December increased 7.1% based on Friday's 

data, a small revision from the 7.4% increase in the advance estimate. 

Nondefense aircraft and parts orders rose by 15.8% in December and 

defense aircraft and parts orders were up 54.7%. Motor vehicles orders 

increased 0.4% in December, while orders for ships and boats fell by 

8.3%. 

     Nondefense capital goods new orders posted a 0.4% decrease, but 

down further to a 0.6% decline when a a small 1.5% increase in the 

civilian aircraft capital goods category is excluded. 

     Overall factory shipments rose 0.6% in the month due to a 0.5% 

rise in durable goods shipments and a 0.7% increase in nondurables 

shipments. Nondefense capital goods shipments saw a decrease of 

0.5%, but up 0.4% excluding aircraft component. 

     Factory inventories increased by 0.5% in the month, compared with 

the 0.6% increase in shipments, making the inventory-to-shipments 

ratio remain at 1.35 following 1.36 in October and 1.37 in September. 

     The Commerce Department's advance report on inventories showed a 

0.2% increase for wholesale inventories and a 0.2% increase for retail 

inventories. While these data are eligible for revision, the levels as 

they stand now, combined with Friday's factory inventory data, would 

result in a 0.3% increase in December business inventories when that 

report is released on February 14, an MNI calculation showed. The 

revised wholesale data for December will be released on February 9 and 

could alter this projection. 

     ** MNI Washington Bureau: 202-371-2121 **