Core Durable Goods Orders Stall In Q4
Jan-26 14:10By: Chris Harrison
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- The preliminary durable goods report for December saw a large beat for headline orders (5.6% vs cons 2.5%) as nondefense aircraft orders surged.
- More importantly though, core details were very close to consensus as core orders dipped -0.2% M/M after a flat Nov and shipments fell -0.4% M/M after -0.2% in Nov.
- It sees the quarterly growth rate for orders drop to just 0.1% annualized from 7.5% annualized in September, the weakest quarter since the pandemic and a string of weak readings in 2019.
- The decline on the month follows two particularly soft months for industrial production – see chart – and the ISM manufacturing survey solidly in contraction territory points to potential further weakness ahead.
