Durable Goods Orders were up slightly, Costs Decrease.
- January Durable Goods Orders: -4.5% M/M to $27.23B vs. -4.0% expected and +5.1% in December.
- Core durable goods: +0.7% vs. +0.1% expected and -0.4% prior.
- Goods, excluding defense: -5.1% vs. +5.6% prior.
- Transportation equipment, down two of the last three months, falling 13.3% to $92.8B, according to the Census Bureau.
- Non-defense orders, excluding aircraft: +0.8% vs. -0.3% prior.
- Last week, consumer spending jumped more than expected in January and PCE inflation accelerated.
After a downward corrected 5.1% increase in December, US durable goods orders, which track the price of orders placed with manufacturers of goods designed to last at least three years, fell 4.5% month over month in January 2023. The figures contrast with market expectations for a 4% fall, which were influenced by a 13.3% decline in orders for transportation equipment, namely purchases for nondefense aircraft and parts (-54.6%). Transport excluded, orders for durable goods increased by 0.7%. Furthermore, orders also dropped for capital goods (-12.8%), notably nondefense ones (-15.3%). Contrarily, orders for machinery (1.6%) and computers and electronics (0.5%) rose. A carefully watched indicator for company spending plans, orders for non-defense capital goods excluding aircraft grew by 0.8%, reversing a 0.3% decline in December.
