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Durable Goods Orders Disappoint, Up on Aircraft Orders

Durable goods orders rose 1.3% in November. Excluding transportation, durable goods orders fell 0.1%.

The Census Bureau reports New Orders for Manufactured Durable Goods in November increased $3.1 billion or 1.3 percent to $241.4 billion.

New Orders

  • Durable Goods: +1.3%
  • Excluding Transportation: -0.1%
  • Excluding Defense: +1.0%
  • Transportation: +4.2%
  • Core Capital Goods: -0.1%
  • October Revised from -1.2% to -0.4%

Shipments

  • Durable Goods: +1.0%
  • Excluding Transportation: +0.2%
  • Transportation: +2.6%
  • Core Capital Goods: +0.3%

Durable Goods Highlights

Notes

  1. This was not a bad report but it failed to meet the Econoday expectation of a 2.0% bounce.
  2. Factoring in revisions, the consensus was nearly spot on.
  3. Autos still show a hurricane impact and they are a sizable portion of durable goods.
  4. Aircraft skewed the the report making November look better than it really was and October worse than it really was.

One can make a bullish or bearish case out of this report but once the hurricane impacts on autos and machinery is over, it may be difficult to sustain good numbers.

Mike "Mish" Shedlock

New home sales were way up (again), theoretically that should translate into more construction in the near future. Are lumber, brick and concrete durable goods?

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