FXstreet.com (Barcelona) - Orders of goods meant to last longer than three years pointed up sharply in the United States, posting the second consecutive increase in December, according to data released by the US Census Department .
Durable goods orders rose 5.2% in December to $226.6 billion, following an upwardly revised 0.5% increase in November, previously estimated 0.1%.
Decembers increase has been widespread among sectors, since excluding transportation, orders for all the other items rose 2.6%; excluding defence, new orders rose 2.9%. Orders for non-defence capital goods increased 5.4% while orders for defence capital goods rose 5.2%.
Shipments of manufactured durable goods edged down 0.1% following a 0.2% decrease in November, while unfilled orders increased 2.5%, above Novembers 1.2% rise.
The increase has been somewhat larger than the 1.9% rise expected by the analysts. According to Ian Shepherdson, Chief U.S. Economist at High Frequency Economics, Ltd: We expected the strong headline number because Boeing received orders for 277 aircraft in December, up from 177 in November,but the 4.4% jump in core capital goods orders (ex-defense and aircraft), which propelled the ex-transportation number, was a surprise.
Shepherdson, however, affirms that this trend will not last long if we have in account the recent declines in manufacturing activity: A strong report, then, but it surely cannot last in the face of the drop in activity reported by manufacturing surveys. If Friday's ISM survey is anything like as weak as the Philly Fed suggests - about 42/43, down from 47.7 - then the trend in orders will turn rapidly south.