INS further reports that the largest decline was registered by the intermediary goods sector, where new orders declined by over one third. Intermediary goods or goods which the producer has are used as raw materials to produce other goods or materials to be processed (such as engines). Percentage-wise, new orders of intermediary goods dropped 34.8 percent. This decline was followed by yet another, namely in the durable goods sector, where the decline was 31.2 percent. More moderate drops in annual terms were registered by the non-durable goods industry, at 12 percent.
A rise was registered for new orders in the capital goods industry, of 4.9 percent. Such goods are used for the production of other goods and/or services, and include buildings, tools, locomotives, trucks, tractors, etc. At first glance, we could speculate that industrialists have now begun acquiring tools (capital goods), because these are less expensive, and they are preparing for the economy to rebound. However, business people say that it is too soon for this.
Another report by INS shows that turnover in industry dropped 20.7 percent in February, compared to the same period last year. Moreover, in the first two months of 2009, turnover in industry contracted 19.7 percent, as a result of the drop in the processing (-20.4 percent) and extraction industries (-8.3 percent).
