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
  New Orders for Durable Goods Rose 1.8% in January
Posted Under: Data Watch • Durable Goods
Supporting Image for Blog Post


Implications:  New orders for durable goods rose in January following two months of declines.  The rise in January was due to aircraft orders, but strip out the volatile transportation sector and durable goods orders declined a slight 0.2%.  Non-transportation orders were led lower in January by a decline in computers and electronic products as well as primary metals, which more than offset increases for fabricated metal products and machinery.  Thankfully, orders outside the transportation sector are still trending upward, including a 2.4% increase versus a year ago and a gain at a 7.5% annual rate in the past three months.  The rise in machinery orders – up in each of the last five months - may be, in part, a sign of continued improvements in the energy sector, which had been pulling down machinery investment since oil prices started declining in mid-2014.  Shipments of "core" capital goods - non-defense, excluding aircraft – declined 0.6% in January, but were revised up for December.  If unchanged in February and March, these shipments will be up at a 2.8% annual rate in Q1 versus the Q4 average.  The second estimate of Q4 GDP is released tomorrow, and we expect to see real GDP growth revised up to a 2.2% annual rate from the initial estimate of 1.9%.  Durable goods orders are volatile from month-to-month, but a focus on non-transportation orders shows steady growth that should continue in the months ahead.  On the housing front, pending home sales, which are contracts on existing homes, declined 2.8% in January, suggesting a decline in closings on existing homes in February. 

Click here for PDF version

Posted on Monday, February 27, 2017 @ 11:21 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 © 2023 All rights reserved.