US Durable Goods Orders Fall For 2nd Straight Month


New orders for US manufactured durable goods decreased by 0.4 percent month-over-month in December 2016, following an upwardly revised 4.8 percent drop in November. The number came worse than market expectations of a 2.6 percent rise as orders for transport equipment dropped 2.2 percent and defense capital goods fell 33.4 percent.

Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, increased by 0.8 percent after a 1.5 percent gain in November.

New orders for manufactured durable goods in December decreased $1.0 billion or 0.4 percent to $227.0 billion, the U.S. Census Bureau announced today. This decrease, down two consecutive months, followed a 4.8 percent November decrease. Excluding transportation, new orders increased 0.5 percent. Excluding defense, new orders increased 1.7 percent. Transportation equipment, also down two consecutive months, drove the decrease, $1.7 billion or 2.2 percent to $73.7 billion. 

Shipments of manufactured durable goods in December, up three of the last four months, increased $3.3 billion or 1.4 percent to $238.0 billion. This followed a 0.3 percent November increase. Transportation equipment, up following two consecutive monthly decreases, led the increase, $2.0 billion or 2.5 percent to $82.3 billion.

Unfilled orders for manufactured durable goods in December, down six of the last seven months, decreased $7.2 billion or 0.6 percent to $1,119.4 billion. This followed a 0.3 percent November decrease. Transportation equipment, also down six of the last seven months, drove the decrease, $8.6 billion or 1.1 percent to $759.8 billion. 

Inventories of manufactured durable goods in December, up five of the last six months, increased less than $0.1 billion or virtually unchanged to $384.4 billion. This followed a 0.2 percent November increase. Machinery, up four of the last five months, drove the increase, $0.4 billion or 0.5 percent to $66.4 billion. 

Nondefense new orders for capital goods in December increased $2.4 billion or 3.8 percent to $66.6 billion. Shipments increased $1.2 billion or 1.8 percent to $71.7 billion. Unfilled orders decreased $5.1 billion or 0.7 percent to $691.8 billion. Inventories increased $0.6 billion or 0.3 percent to $171.1 billion. Defense new orders for capital goods in December decreased $4.8 billion or 33.4 percent to $9.5 billion. Shipments decreased $0.1 billion or 1.2 percent to $10.9 billion. Unfilled orders decreased $1.3 billion or 0.9 percent to $140.9 billion. Inventories decreased $0.2 billion or 0.7 percent to $20.7 billion. 

US Durable Goods Orders Fall For 2nd Straight Month


US Census Bureau | Joana Ferreira | joana.ferreira@tradingeconomics.com
1/27/2017 5:45:26 PM