In December 2023, new orders in the USA increased by 6% compared to December 2022, marking the eighth consecutive month of year-over-year growth. However, this growth represents a slowdown from the double-digit percentages seen previously. Throughout calendar year 2023, new orders saw a total 5% increase over 2022, which itself experienced a significant 33% decline from 2021. That's mentioned in a report of accounting company SmithLeonard.
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Shipments in December 2023 decreased by 4% from November 2023 and by 14% from December 2022, although the latter saw a 3% increase from December 2021. For the entirety of 2023, shipments were down by 17% from 2022. Despite recent improvements in new orders, the trend is still influenced by many companies fulfilling orders from their backlog, which remained historically high throughout much of 2022. Consequently, backlogs in December 2023 were down by 5% from November 2023 and by 33% compared to December 2022.
Receivable levels experienced a 12% decrease from November 2023, reversing the apparent 5% increase seen in the previous month. Compared to December 2022, receivable levels were down by 16%, aligning closely with the year-to-date decline in shipments.
Inventories and employee levels remained consistent with previous months but decreased compared to December 2022. This suggests that companies have made substantial adjustments to their levels to match current operational needs.
Source: SmithLeonard
