EmailThe durable orders report for December fit the mold of presenting better-than-expected fourth quarter data. Even more important is that it fit the mold of a growing economy.
Durable orders increased 3.0% in December (Briefing.com consensus +2.0%) on top of an upwardly revised 4.3% (from 3.7%) jump in November. Excluding autos, durable orders rose 2.1% on top of an upwardly revised 0.5% (from 0.3%) increase in November.
Orders for nondefense aircraft and parts (+18.9%) had a large part in the December gain, yet they had supporting company with orders for primary metals (+5.1%), machinery (+6.0%), computers and electronic products (+1.2%), and communications equipment (+2.2%) all seeing increases.
Nondefense capital good orders, excluding aircraft -- a proxy for business investment -- increased by 2.9%, more than offsetting a 1.2% decline in November. Shipments, in turn, increased by 2.9% after a 1.0% drop in November and should factor favorably in forecasts for Q4 GDP.
