Durable Goods Orders Surge 3% Beating Expecations

car manufacturing

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.

Click here for the full release.

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.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.