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Friday, March 24, 2023


Core US Factory Orders Jump More Than Expected In Jan, Aircraft Orders Plunge

Following the ugly flash durable goods print (de-bound from Boeing bounce in Dec), US Factory Orders for January were expected to drop 1.8% MoM (after a 1.8% MoM rise in Dec). In fact, the headline print fell 1.6% MoM (better than expected). That leaves US Factory order YoY growth at its weakest since Feb 2021.

Source: Bloomberg

Core factory orders (ex-transports) rose 1.2% MoM, better than the +1.0% MoM expected after a 1.2% decline in Dec…

Source: Bloomberg

The final US Durable Goods Orders print confirmed the 4.5% drop reported in the flash print, dragging the YoY rise down to +3.1% (its weakest since Mar 2021)

Source: Bloomberg

The big swing factor was no Boeing orders as non-defense aircraft new orders tumbled 54.6% MoM…

Additionally, the value of core capital goods orders, a proxy for investment in equipment that excludes aircraft and military hardware, confirmed it increased 0.8% last month after a downwardly revised 0.3% decline in December, Commerce Department figures showed Monday.

So, all in all, this is ‘good’ news for the economy and thus ‘bad’ news for The Fed.

This post was originally published on this site

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