U.S. Durable Goods Orders Increase by Most in Six Months

Orders placed with U.S. factories for durable goods increased in December by the most in six months, providing more evidence of a bustling industrial sector.

Bookings for goods meant to last at least three years increased 2.9 percent after a 1.7 percent advance in November that was larger than previously reported, data from the Commerce Department showed Friday.

While orders for non-military capital goods excluding aircraft unexpectedly fell 0.3 percent in December, bookings for the previous month were revised to a 0.2 percent increase from a previously reported 0.2 percent decline.

For all of 2017, orders for durable goods increased 5.8 percent, the most in six years. That included a 5.3 percent gain in bookings for business equipment and underscores solid investment that may continue following Republican-led tax cuts. Robust consumer spending and less inventory accumulation in the fourth quarter may also fuel production gains in coming months.

Shipments of non-military capital goods excluding aircraft, which are used to calculate gross domestic product, increased 0.6 percent in December after rising a revised 0.4 percent the month before, according to the Commerce Department.

Other Details

  • Orders for motor vehicles and parts rose 0.4 percent
  • Bookings for commercial aircraft climbed 15.9 percent
  • Orders also increased for machinery, metals and military aircraft
  • Durable goods inventories rose 0.3 percent
  • Defense capital goods orders increased 19.5 percent
  • Bloomberg

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    Dean Popplewell

    Dean Popplewell

    Vice-President of Market Analysis at MarketPulse
    Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
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