The Trump Effect: Global Growth, USD, Drive Durable Goods Orders Up
Orders for long-lasting manufactured goods rose 2.9% in December, the fastest pace since June and another sign of strength for American industry under President Trump’s policies, the Commerce Department said Friday.
Orders were lifted by a 15.9% spike in demand for civilian aircraft and aviation parts, which can bounce around from month to month. Excluding the volatile transportation sector, orders increased 0.6% in December, the US Commerce Depearment said.
Overall orders for durable goods, which are meant to last at least three years, have risen in four the last five months and were up 5.8% for Y 2017, best in 6 years.
A Key category that measures business investment; orders for non-defense capital goods excluding aircraft dipped 0.3% in December.
American manufacturers are benefiting from a pickup in global economic growth and a weaker USD, which makes US goods less expensive in foreign markets.
- The Commerce Department upgraded the November increase in durable goods orders to 1.7% from the 1.3% gain it originally reported.
- Orders for computers dropped 4.4%, 2nd straight monthly decliner.
- Machinery orders rose 0.6% last month after being flat in November.
- Orders for cars, trucks and auto parts rose 0.4%, decelerating after gains of 2% in November and 1.5% in October.
Have a terrific week
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