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Durable Goods Orders Dive 3.7%

The consensus got the direction right but not the magnitude. Economists expected durable goods orders to drop 2.0%.

Aircraft had been leading durable goods orders; and, due to extremely long lead times, that's not a sign of strength. But it was not just aircraft orders that took a hit in the Census Bureau Durable Goods Advance Report.

New Orders

  • New orders for manufactured durable goods in January decreased $9.2 billion, or 3.7 percent, to $239.7 billion.
  • Excluding transportation, new orders decreased 0.3 percent.
  • Excluding defense, new orders decreased 2.7 percent.
  • Transportation equipment, also down following two consecutive monthly increases, led the decrease; $8.6 billion, or 10.0 percent, to $77.7 billion.

Shipments

  • Shipments of manufactured durable goods in January, up eight of the last nine months, increased $0.6 billion, or 0.2 percent, to $247.0 billion. This followed a 0.5 percent December increase.
  • Transportation equipment, up two of the last three months, led the increase, $0.4 billion, or 0.5 percent, to $81.3 billion.

Unfilled Orders

  • Unfilled orders for manufactured durable goods in January, down following four consecutive monthly increases, decreased $3.1 billion, or 0.3 percent, to $1,140.9 billion. This followed a 0.6 percent December increase.
  • Transportation equipment, down three of the last four months, drove the decrease; $3.6 billion, or 0.5 percent, to $771.8 billion.

Inventories

  • Inventories of manufactured durable goods in January, up eighteen of the last nineteen months, increased $1.3 billion, or 0.3 percent, to $408.5 billion. This followed a 0.5 percent December increase.
  • Transportation equipment, up two consecutive months, led the increase, $0.7 billion, or 0.5 percent, to $131.9 billion.

Capital Goods

Nondefense new orders for capital goods in January decreased $1.2 billion, or 1.5 percent, to $73.6 billion.

Mike "Mish" Shedlock

Wait till the February report which will be even lower. By then the news will finally have got through to Wall Street. As for the deluded FED

Thanks for introducing this report to me

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