by Bill McBride on 2/28/2012 08:39:00 AM
Tuesday, February 28, 2012
Durable goods is always very volatile. Durable goods orders were expected to decline due to lower aircraft orders (Nondefense aircraft and parts declined 19%) and the expiration of a tax credit that allowed for faster depreciation of equipment purchases.
From the Census Bureau: Advance Report on Durable Goods Manufacturers’ Shipments, Inventories and Orders
New orders for manufactured durable goods in January decreased $8.6 billion or 4.0 percent to $206.1 billion,the U.S. Census Bureau announced today. This decrease, down following three consecutive monthly increases, followed a 3.2 percent December increase. Excluding transportation, new orders decreased 3.2 percent. Excluding defense, new orders decreased 4.5 percent.
Transportation equipment, down following two consecutive monthly increases, had the largest decrease, $3.6 billion or 6.1 percent to $55.2 billion. This was due to nondefense aircraft and parts, which decreased $3.8 billion.