US Durable Goods Rise More Than Expected

New orders for US manufactured durable goods went up 1.8 percent month-over-month in January of 2017, following an upwardly revised 0.8 percent drop in December and beating market expectations of a 1.7 percent rise. It is the first gain in three months, boosted by a 6 percent jump in transportation equipment. However, non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, fell 0.4 percent after an upwardly revised 1.1 percent gain in December.
US Census Bureau | Joana Taborda | joana.taborda@tradingeconomics.com 2/27/2017 1:44:26 PM
Excluding transportation, new orders decreased 0.2 percent and excluding defense, new orders increased 1.5 percent. Transportation equipment, also up following two consecutive monthly decreases, drove the increase, $4.3 billion or 6.0 percent to $76.4 billion.

Shipments of manufactured durable goods in January, down following two consecutive monthly increases, decreased $0.2 billion or 0.1 percent to $238.3 billion. This followed a 1.6 percent December increase. Machinery, also down following two consecutive monthly increases, drove the decrease, $0.5 billion or 1.6 percent to $30.7 billion.

Unfilled orders for manufactured durable goods in January, down seven of the last eight months, decreased $4.0 billion or 0.4 percent to $1,114.3 billion. This followed a 0.7 percent December decrease. Transportation equipment, also down seven of the last eight months, drove the decrease, $5.6 billion or 0.7 percent to $752.9 billion.

Inventories of manufactured durable goods in January, up two of the last three months, increased $0.1 billion or virtually unchanged to $383.8 billion. This followed a 0.1 percent December decrease. Computers and electronic products, up three of the last four months, drove the increase, $0.2 billion or 0.5 percent to $42.7 billion.

Nondefense new orders for capital goods in January increased $2.4 billion or 3.6 percent to $69.0 billion. Shipments decreased $0.3 billion or 0.4 percent to $71.9 billion. Unfilled orders decreased $2.9 billion or 0.4 percent to $688.7 billion. Inventories decreased $0.3 billion or 0.2 percent to $170.4 billion. Defense new orders for capital goods in January increased $0.8 billion or 8.0 percent to $10.4 billion. Shipments increased less than $0.1 billion or 0.2 percent to $11.0 billion. Unfilled orders decreased $0.6 billion or 0.4 percent to $140.3 billion. Inventories increased $0.3 billion or 1.6 percent to $21.1 billion.

US Durable Goods Rise More Than Expected