Durable Goods Orders Fall More Than Expected in January

New orders for manufactured durable goods fell in January, coming in at $276.65B. This is a 6.1% decline from the previous month and more than the expected 4.9% decline. The series is down 0.6% year-over-year (YoY). If we exclude transportation, "core" durable goods were down 0.3% from the previous month and up 1.1% from one year ago.

New orders for manufactured durable goods in January, down three of the last four months, decreased $18.0 billion or 6.1 percent to $276.7 billion, the U.S. Census Bureau announced today. This followed a 0.3 percent December decrease. Excluding transportation, new orders decreased 0.3 percent. Excluding defense, new orders decreased 7.3 percent. Transportation equipment, also down three of the last four months, led the decrease, $17.4 billion or 16.2 percent to $89.8 billion.

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Durable Goods

Durable goods refers to tangible products that can be stored or inventoried and that have an average life of at least three years. Durable goods are typically expensive and therefore tend to be purchased when there is confidence in the economy. New orders for durable goods are a leading indicator, meaning when purchases increase it typically hints at an improvement to the economy. On the flip side, when the new orders trend down it is indicating a lack of confidence in the economy.