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Core US durable goods orders fall in December

By Alexander Bueso

Date: Thursday 21 Feb 2019

Core US durable goods orders fall in December

(Sharecast News) - Orders for goods made to last more than three years rose a tad more quickly than expected at the end of 2018, even as a key lead indicator of investment trends weakened.
According to the Department of Commerce, orders for so-called durable goods grew at a 1.2% month-on-month clip in December to reach $254.5bn.

Although that was less than the 1.5% increase that economists had penciled-in, it was made up for by an upwards revision to the prior month's figure of three tenths of a percentage point to 1.0%.

To the upside, orders for motor vehicles and parts bounded ahead, rising by 2.1% versus November to $62.38bn, while those for non-defence aircraft and parts jumped 28.4% to $12.82bn.

Orders for computers and related products on the other hand fell by 8.3% to $1.76bn, while those for communications equipment were down by 5.0% at $3.57bn.

Primary metals and machinery orders also sported falls, of 0.9% to $21.55bn and of 0.4% to $32.7bn, respectively.

Nevertheless, orders for non-defence capital goods, excluding aircraft, which are known as 'core' capital goods orders and considered a good lead indicator for companies' capital spending, fell by 0.7%, whereas the consensus call was for an increase of 0.2%.

Furthermore, November's decline was revised to show a month-on-month drop of 1.0%, versus an initial estimate of a 0.6% contraction.

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