Orders for U.S. Durable Goods Increase by Most in Six Months

By Katia Dmitrieva / January 27, 2018 / www.bloomberg.com / Article Link

Orders placed with U.S. factories fordurable goods increased in December by the most in six months,providing more evidence of a bustling industrial sector.

Bookings for goods meant to last at least three yearsincreased 2.9 percent after a 1.7 percent advance in Novemberthat was larger than previously reported, data from the CommerceDepartment showed Friday.

While orders for non-military capital goods excludingaircraft unexpectedly fell 0.3 percent in December, bookings forthe previous month were revised to a 0.2 percent increase from apreviously reported 0.2 percent decline.

For all of 2017, orders for durable goods increased 5.8percent, the most in six years. That included a 5.3 percent gainin bookings for business equipment and underscores solidinvestment that may continue following Republican-led tax cuts.Robust consumer spending and less inventory accumulation in thefourth quarter may also fuel production gains in coming months.

Shipments of non-military capital goods excluding aircraft,which are used to calculate gross domestic product, increased0.6 percent in December after rising a revised 0.4 percent themonth before, according to the Commerce Department.

Other Details

  • Orders for motor vehicles and parts rose 0.4 percent
  • Bookings for commercial aircraft climbed 15.9 percent
  • Orders also increased for machinery, metals and military aircraft
  • Durable goods inventories rose 0.3 percent
  • Defense capital goods orders increased 19.5 percent
  • — With assistance by Chris Middleton

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