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Last Update: 23-Dec-11 09:45 ET
Durable Goods Orders Surge on Strong Demand for Aircraft
Durable goods orders increased 3.8% in November after showing no growth in November. The Briefing.com consensus expected durable goods orders to increase 2.0%.
The November gain came almost entirely from the aircraft sector. Boeing (BA) announced 94 new aircraft orders in November, up from only 7 in October. This included 62 orders for its new 777 model. This led to a 73.3% increase in nondefense aircraft and a 12.1% increase in defense aircraft orders.
Excluding transportation, durable goods orders increased 0.3%, which was exactly what the consensus expected. October orders were revised up from 1.1% to 1.5%.
The gains outside of transportation came primarily from a 5.2% increase in orders for primary metals. This suggests that manufacturers expect equipment orders to pickup in the new year.
Business investment demand weakened for a second consecutive month. Orders of nondefense capital goods excluding aircraft fell 1.2% in November after declining 0.9% in October. Shipments, which factor directly into GDP, fell for a third consecutive month and will weigh down our Q4 GDP projection.
On the positive side, unfilled orders of nondefense capital goods excluding aircraft increased a healthy 0.9%. As manufacturers work to pare down the number of unfilled orders, shipments should resume an upward trend in the near future.
The November gain came almost entirely from the aircraft sector. Boeing (BA) announced 94 new aircraft orders in November, up from only 7 in October. This included 62 orders for its new 777 model. This led to a 73.3% increase in nondefense aircraft and a 12.1% increase in defense aircraft orders.
Excluding transportation, durable goods orders increased 0.3%, which was exactly what the consensus expected. October orders were revised up from 1.1% to 1.5%.
The gains outside of transportation came primarily from a 5.2% increase in orders for primary metals. This suggests that manufacturers expect equipment orders to pickup in the new year.
Business investment demand weakened for a second consecutive month. Orders of nondefense capital goods excluding aircraft fell 1.2% in November after declining 0.9% in October. Shipments, which factor directly into GDP, fell for a third consecutive month and will weigh down our Q4 GDP projection.
On the positive side, unfilled orders of nondefense capital goods excluding aircraft increased a healthy 0.9%. As manufacturers work to pare down the number of unfilled orders, shipments should resume an upward trend in the near future.
