Headline: December durable goods surged 3% in December. November orders were revised to 4.7%.
Ex-transportation durable goods were up 2.1%, compared with a 0.5% gain the previous month.
Ex-defence orders were up 3.5% in December, against a 4.6% gain the previous month.
Of note, defence new orders for capital goods decreased $0.8 billion or 12.4%, to $5.3 billion.
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Expectations: Durable goods orders are expected to rise 2.2% on a month-over-month basis in December. Ex-transportation they’re expected to rise 0.7% month-over-month.
Analysis: Investors look to to durable goods numbers because they show new orders placed with domestic manufacturers and indicate demand for everything from household goods like refrigerators, to cars, and industrial machinery. Increased expenditures on investment goods also form a major component of the economy.