Economic News Blog
Posted by: Steven Kline, Jr. 6. January 2016

Durable Orders Increase 1.3 Percent in November

Real durable goods new orders in November 2015 were $227,352 million. Compared with one year ago, durable goods new orders were up 1.3 percent. November was the first month of growth in durable goods orders since October 2014. As a result, the annual rate of change, now -4.4 percent, showed a decelerating contraction for the first time since it began contracting in July 2015. 

Motor vehicle and parts orders increased a 10.7 percent. That was the second time in three months that motor vehicle and parts orders increased more than 10 percent. The annual rate of change grew at an accelerating rate for the fourth month in a row. Motor vehicle and parts new orders were growing at their fastest annual rate, now 8.1 percent, since February 2014. 

Aerospace orders grew month-over-month for the second month in a row. In November, aerospace orders were up 4.9 percent. Annually, aerospace orders contracted at a decelerating rate for the third consecutive month. The current contraction is mostly due to a single, extremely large month of orders in July 2014. This positive trend in aerospace orders should continue in upcoming months.

We use real capital goods new orders to forecast activity in metalcutting job shopsmetalworking, and durable goods.

 

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