United States Durable Goods Orders

New orders for manufactured durable goods in the US fell 2.2% month-over-month to $276.1 billion in December 2024, following a downwardly revised 2% drop in November and far below market expectations of a 0.6% increase. The decline was driven by transportation equipment, which dropped 7.4%, particularly nondefense aircraft and parts (-45.7%), likely due to reduced bookings for Boeing. Excluding transportation, durable goods orders rose 0.3%. Excluding defense, new orders fell 2.4%. Orders also declined for capital goods (-7.1%) and primary metals (-0.6%). However, orders for nondefense capital goods excluding aircraft, a key proxy for business investment plans, rose 0.5%, following a 0.9% increase in November.