U.S. durable goods orders rise below expectations in November

Durable goods orders in the U.S. grew sequentially in November, but came in below expectations. Orders were up 1.3 percent, as compared with the expectation of 2 percent sequential rise. Core orders also came in below expectations, falling 0.1 percent.

But orders for October were upwardly revised throughout the board, implying a stronger starting point for the quarter and also countering some of the downside news of the latest report. Most of the miss relative to the expectations for November came from non-transportation orders, with categories such as computers, machinery and fabricated metals recording sequential declines. Transportation orders grew 4.2 percent, stimulated by a solid 14.5 percent rise in nondefense aircrafts. Core shipments were up 1 percent, rising from 0.4 percent the previous month.

“Strong upward revisions to October’s data on orders and shipments more than offset the drag from weak readings in the November report, thereby boosting our equipment investment tracker. In all, our Q4 GDP tracker was left unchanged at 2.6 percent q/q saar, after rounding”, stated Barclays.

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