U.S. Durable Goods Orders Rose in December
WASHINGTON--Demand for long-lasting goods produced by U.S. factories increased for the second month in a row in December, while an underlying gauge of business investment pulled back.
Overall orders for durable goods, manufactured products intended to last at least three years, rose a seasonally adjusted 1.2% in December from the prior month, the Commerce Department said Thursday. This was the largest monthly gain since last August. Economists surveyed by The Wall Street Journal expected a 1.5% gain for the month.
Orders for transportation equipment drove December's durable goods orders growth. New orders for vehicles and vehicle parts grew robustly, along with commercial aircraft and parts orders.
https://www.wsj.com/articles/u-s-durable-good...1550756072
When excluding the transportation demand gauge, which tends to be volatile, orders grew at a weaker 0.1% pace. Primary metals, machinery, and electrical equipment orders were down, along with communications equipment, which clocked the largest monthly decline in nearly two years. Orders for fabricated metals grew.
In 2018, total durable goods orders increased 8.1%, compared with 2017.
An underlying business-investment gauge, new orders for nondefense capital goods excluding aircraft, declined 0.7% from November, the second consecutive month of declines. Still, the gauge was up 6.1% in 2018, compared with 2017.
In recent years, higher oil prices and energy-sector investment had spurred demand for U.S. manufacturers. Solid global growth and U.S. tax cuts passed in late 2017 also helped drive demand for American-made products. The government also ramped up its defense spending last year, buying more manufactured goods.
But any tax cut impact appears to be waning at the same time that slowing global economic growth and a strengthening dollar could be dampening demand for U.S.-produced items.
The Federal Reserve's industrial output report showed U.S. production contracted unexpectedly in January, while a gauge of health in the manufacturing sector showed factory growth accelerated in January. The two reports were the latest in a series of seemingly-contradictory economic data.
The Commerce Department report on durable goods was delayed because of the partial government shutdown.
WASHINGTON--Demand for long-lasting goods produced by U.S. factories increased for the second month in a row in December, while an underlying gauge of business investment pulled back.
Overall orders for durable goods, manufactured products intended to last at least three years, rose a seasonally adjusted 1.2% in December from the prior month, the Commerce Department said Thursday. This was the largest monthly gain since last August. Economists surveyed by The Wall Street Journal expected a 1.5% gain for the month.
Orders for transportation equipment drove December's durable goods orders growth. New orders for vehicles and vehicle parts grew robustly, along with commercial aircraft and parts orders.
https://www.wsj.com/articles/u-s-durable-good...1550756072
When excluding the transportation demand gauge, which tends to be volatile, orders grew at a weaker 0.1% pace. Primary metals, machinery, and electrical equipment orders were down, along with communications equipment, which clocked the largest monthly decline in nearly two years. Orders for fabricated metals grew.
In 2018, total durable goods orders increased 8.1%, compared with 2017.
An underlying business-investment gauge, new orders for nondefense capital goods excluding aircraft, declined 0.7% from November, the second consecutive month of declines. Still, the gauge was up 6.1% in 2018, compared with 2017.
In recent years, higher oil prices and energy-sector investment had spurred demand for U.S. manufacturers. Solid global growth and U.S. tax cuts passed in late 2017 also helped drive demand for American-made products. The government also ramped up its defense spending last year, buying more manufactured goods.
But any tax cut impact appears to be waning at the same time that slowing global economic growth and a strengthening dollar could be dampening demand for U.S.-produced items.
The Federal Reserve's industrial output report showed U.S. production contracted unexpectedly in January, while a gauge of health in the manufacturing sector showed factory growth accelerated in January. The two reports were the latest in a series of seemingly-contradictory economic data.
The Commerce Department report on durable goods was delayed because of the partial government shutdown.
