Durable Goods Orders (Dec) Actual -2.6%, Expected -1.9%, Previous -3.7% (Revised from -1.5%)
Core Durable Goods Orders (Dec) Actual -3.6%%, Expected -2.6%, Previous -1.7% (Revised from 0.6%)
Release Explanation: The value of new purchase orders placed with manufacturers that have a life span of more than three years. These can include; aircraft, household appliances, computers and automobiles. Builds an economic picture of how busy the manufacturing industry will be over the coming months and is considered a leading indicator. Affects Retail Sales, CPI and GDP. A currency will be affected eventually by the consequences of these numbers, not always straight away.
Trade Desk Thoughts: Orders for durable goods decreased by 2.6% last month to a seasonally adjusted $176.80 billion, the Commerce Department said Thursday.
Orders fell 5.7% in 2008 compared to the previous year as the recession worsened. Orders increased by 1.3% in 2007. The 5.7% decline last year was the second largest ever, topped only by a 10.7% plunge in 2001.
A key barometer of business equipment spending, orders for non-defense capital goods excluding aircraft, fell by 2.8%, after increasing 1.7% in November. Orders were flat in 2008. December shipments for non-defense capital goods excluding aircraft, used by the government when calculating gross domestic product figures, rose by 0.9% in December after dropping 1.4% the previous month.
Unfilled orders, a sign of future demand, decreased in December by 1.3%, the biggest drop since October 2002.
Core durable goods orders (ex-transportation) fell by 3.6% in December. Orders dropped 7.2% for computers and electronics, 5.0% for machinery, 3.6% for fabricated metals, and 6.9% for primary metals. Orders climbed 9.4% for electrical equipment.
Motor vehicles and parts decreased by 5.2% last month and were down 19.6% on the year.
Forex Technical Reaction: Currency markets and stock futures were holding fairly steady after the report was
Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com