U.S. durable goods orders surge in January

WASHINGTON, Feb 25 (BestGrowthStock) – New orders for long-lasting
U.S. manufactured goods rose more than expected in January as
civilian aircraft bookings soared, but slipped excluding
transportation, government data showed on Thursday.

The Commerce Department said durable goods orders jumped
3.0 percent, the biggest gain since July, after an upwardly
revised 1.9 percent increase in December.

Analysts polled by Reuters forecast orders rising 1.5
percent last month from December’s previously reported 1.0
percent advance.

The surge in orders likely reflected the 59 aircraft
bookings received by Boeing in December, which analysts said
had not been fully accounted for in the durables report for
that month. In addition, Boeing received 10 aircraft orders in
January, according to information posted on the company’s
website.

Non-defense aircraft and parts orders surged 126 percent
last month after a 28.3 percent drop in December. Defense
aircraft orders climbed 11.6 percent after a 22.7 percent rise
the prior month.

Durable goods orders are a leading indicator of
manufacturing activity, which in turn provides a good measure
for overall business health.

However, new durable goods orders excluding transportation
unexpectedly fell 0.6 percent last month after increasing 2.0
percent in December. Analysts polled by Reuters had expected
new orders excluding transportation to rise 1.0 percent. The
decline came as orders for machinery saw their biggest decline
in a year.

Non-defense capital goods orders excluding aircraft, a
closely watched proxy for business spending, fell 2.9 percent
in January from a 3.3 percent rise the prior month.

Durable goods inventories were flat last month after easing
0.2 percent in December. Shipments, which go into the
calculation of gross domestic product, slipped 0.2 percent in
January. They rose 2.4 percent in December.

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(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

U.S. durable goods orders surge in January