Orders for Durable Goods Increase by Most in Six Months

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Patrick T. Fallon/Bloomberg News

Orders placed with U.S. factories for durable goods increased in December by the most in six months, providing more evidence of a bustling industrial sector.

Bookings for goods meant to last at least three years increased 2.9% after a 1.7% advance in November that was larger than previously reported, data from the Commerce Department showed Jan. 26.

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While orders for non-military capital goods excluding aircraft unexpectedly fell 0.3% in December, bookings for the previous month were revised to a 0.2% increase from a previously reported 0.2% decline.

For all of 2017, orders for durable goods increased 5.8%, the most in six years. That included a 5.3% gain in bookings for business equipment and underscores solid investment that may continue following Republican-led tax cuts. Robust consumer spending and less inventory accumulation in the fourth quarter may also fuel production gains in coming months.

Shipments of non-military capital goods excluding aircraft, which are used to calculate gross domestic product, increased 0.6% in December after rising a revised 0.4% the month before, according to the Commerce Department.

Other Details

• Orders for motor vehicles and parts rose 0.4%.

• Bookings for commercial aircraft climbed 15.9%.

• Orders also increased for machinery, metals and military aircraft.

• Durable goods inventories rose 0.3%.

• Defense capital goods orders increased 19.5%.

With assistance by Chris Middleton