Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       

Blog Home
   Brian Wesbury
Chief Economist
Click for Bio
Follow Brian on Twitter Follow Brian on LinkedIn View Videos on YouTube
   Bob Stein
Deputy Chief Economist
Click for Bio
Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
  Durable goods orders declined 1.3% in November

Implications:  Ignore the headline decline in durable goods orders; the report was very good news for the US economy.  All of the overall drop in orders was due to the transportation sector, particularly civilian aircraft, which is extremely volatile from month to month.  Outside the transportation sector, every single major category of orders increased in November, with the largest gain in computers and electronics, rebounding from a steep decline last month.  Meanwhile, shipments of "core" capital goods (which exclude civilian aircraft and defense) also bounced back in November, rising 1.0% in November after a 1.2% decline in October.  These shipments are up 10.4% versus a year ago but the pace of the gains has slowed of late, rising at only a 3.1% annual rate in the past three months.  However, we think these shipments are poised to reaccelerate.  Unfilled orders for these goods (which can turn into future shipments) have increased seven months in a row.  Cash on the balance sheets of non-financial companies is at a record high and corporate profits are near a record high.  In this environment, business investment is heading up.

Click here to view the entire report.
Posted on Thursday, December 23, 2010 @ 10:33 AM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2022 All rights reserved.