Washington: New orders for US-manufactured durable goods experienced a smaller than expected decline in December, registering a 1.4% drop from the previous month, as reported by data released by the US Census Bureau. This decline amounted to a $4.6 billion decrease, bringing the total to $319.6 billion in new orders.
According to Anadolu Agency, the fall in orders followed an upwardly revised 5.4% monthly decline in November, contrary to market expectations which had predicted a 1.8% decrease for December. The US Census Bureau stated that transportation equipment, which has seen a downturn in two of the last three months, was a significant contributor to the decline, falling by $6.4 billion or 5.3% to a total of $113.5 billion.
The decline in transportation equipment orders was largely attributed to a 25.9% decrease in non-defense aircraft and parts. Orders for capital goods also saw a reduction of 3.9%. However, there was a notable uptick in orders for defense aircraft and parts, which rose by 9.5% in December compared to 3.2% in November, alongside a 3% increase in orders for computers and electronic products, up from 0.7%.
Orders for non-defense capital goods, excluding aircraft, saw a positive change, increasing by 0.6%. When excluding transportation, new orders showed a 0.9% month-on-month increase in December. However, excluding defense, new orders decreased by 2.5%.
The data on durable goods orders is a crucial indicator for assessing the short-term performance of the US industrial sector, which is a vital component of the country’s economy.
Source: Anadolu Agency
