Highlights of the factory orders report for November:
- Prior was -0.7%
- Ex-transportation -0.6%
- Inventories +0.1%
- Shipments -0.6%
- November durable goods orders revised to -0.9% from 0.7%
- Capital goods orders non-defense ex-air revised to -0.5% from 0.0%
Durable goods orders are struggling and it should be the main US economic worry. This report was initially expected to show orders up 3.0% when it was released on Dec 23 and capital goods orders non-defense ex-air were expected at +1.0%.
Economists, the market and Fed all expect to see business investment as a driver of growth in 2015 but the numbers aren’t appearing to support it.
If you look at total orders for capital goods non-defense ex-air, it’s been lower or flat for 5 months after a big spike in July. The level of orders isn’t showing any kind of excitement about business investment.
Core capital goods orders total NSA
