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Dec 21, 2018

Bulletin: Orders for durable goods rise 0.8% in November, led by aircraft

Greg Robb




By
Senior economics reporter
Bloomberg News/Landov
An employee sits on top of a Beechcraft King Air turboprop aircraft during assembly at the Textron Aviation Inc. production facility in Wichita, Kan.
The numbers: Orders for durable goods rebounded by 0.8% in November after a sharp 4.3% decline in the prior month, the government said Friday. The gain in November orders was in line with forecasts of economists surveyed by MarketWatch.
Orders for nondefense capital goods excluding aircraft, known as “core capital goods” fell 0.6% in November, the second drop in the past three months. Shipments of core goods fell 0.1%. Orders excluding defense fell 0.1% in November.
What happened: Transportation orders, mainly aircraft, led the gain in November orders. Stripping out planes and cars, orders fell 0.3%. Transportation often exaggerates the ups and downs in orders because of lumpy demand from one month to the next.
Bookings for commercial jets rose 6.7% in November and they jumped 31.5% for fighter jets and other military aircraft. Orders for cars slipped 0.2%.
Aside from aircraft, orders also increased for primary metals. Orders fell for machinery and electrical equipment. Orders for computers were flat in the month.
Big picture: The underlying trend in core orders has cooled recently and suggests that business equipment investment will not be a boost for fourth-quarter gross domestic product.
Market reaction: Stocks were set to open lower as shutdown concerns were added to worries about Federal Reserve monetary policy. The Dow Jones Industrial Average DJIA, -1.99%  tumbled 464 points on Thursday.

Source: MarketWatch