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.

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Bloomberg

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