The aerospace industry has reason to rejoice this year, but that may be the only silver lining in the dark clouds over the U.S. industrial segment. The Dow Jones Industrial Average has actually registered a dip of while the Dow has risen by 5% this year, so far.
January, a good month for aerospace
Although the year is still young, it seems evident that the aerospace industry is going to record some good news. There was a 70% rise in the order for passenger craft and this was helped along by a 60% rise in bookings for military related aircraft like fighter jets plus other military goods. The automobile industry was another industry that registered a positive movement but with far less impressive figures than aerospace. In this industry, new orders were up by a mere 0.2%
A look at all the other sectors shows why the auto industry still has reason to celebrate because across the board bookings have dipped by 0.2% in the first month of the year. Given that this is the very first dip in new orders recorded over a period of six months gives cause for concern.
Electrical and technology industry also record poor order bookings
The poor showing is not limited to these industries. Technology products, as in computers and networking products and electrical equipment industries have also registered a fall in order bookings. Heavy duty goods manufacturers have also been impaired and this is indicated by the reduction in orders for primary metals that are used extensively in these manufacturing processes.
From a bird’s eye point of view, the core capital goods orders fell by 0.4% in the first month, marking the first dip in a four month period. Shipment of core capital goods also followed suit with a fall of 0.6% being registered in January.
Uncertainty about policies adding to the woes
The subdued activity and the lack of enthusiasm in the industry is being attributed to the continuing ambiguity about policies that will be announced by the new president. Many dramatic policy changes were promised during the campaign and industry players are waiting to see if these will be introduced in the coming months. With a complete lack of clarity about how the president will proceed and what form his policies will take, it has become a game of wait and watch for many industry participants.