Durable Goods Orders Were Weak

Durable goods orders fell in November by 0.7%.

Nondefense capital goods (or capex orders) fell by 0.4%.

Both numbers are below expectations.

Expectations were for orders to increase by 3.0%, and for core capex orders to increase by 1.0%.

“Total orders unexpectedly contracted … in November, easily disappointing market expectations which were looking for a firm gain,” writes Bricklin Dwyer of BNP Paribas.

“Core capital goods orders fell flat after two months of declines — suggesting we could see more weakness ahead,” Dwyer adds.

In October, durable goods orders unexpectedly increased by 0.4%, which was better than the 0.6% decline expected by economists.¬†However, core capex orders — which are an indicator of business spending — unexpectedly fell 1.3%. Economists had forecast a 1.0% increase.

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