New orders for durable goods in the U.S. fell by a larger-than-expected 5.2% in January (market expectations were for a 4.7% decline) following the sizable gains recorded in each of the previous four months that saw rise 15.1% over that period.
The weakness in January was concentrated in orders for transportation equipment which fell 19.8% in the month reflecting an outsized 45.7% plunge in the volatile aircraft component. Excluding transportation equipment, durable goods orders posted a solid 1.9% increase in January, beating market expectations for a 0.2% gain and representing the largest monthly gain since December 2011.
Orders of non-defense capital goods excluding aircraft, a commonly used leading indicator of future business capital investment, jumped 6.3% to more than retrace the unrevised 0.3% decline recorded in December.
Shipments of durable goods fell 1.2% in January, more than reversing the revised 0.5% (was 1.1%) gain recorded in December.
Shipments of non-defense capital goods excluding aircraft, which enters directly into the Bureau of Economic Analysis' quarterly estimate of business capital spending, fell 1.0% following the flat reading in the previous month (initially reported as a 0.2% gain).
