Orders for manufactured goods increased 1.8% in December after falling 1.9% in the previous reading, according to U.S. Census Bureau data.
Durable goods: Durable goods orders increased 5.6%, bolstered by defense and nondefense aircraft and parts, which are often volatile month to month.
- Excluding transportation equipment, new durable goods orders fell 0.2% in December.
Core capital goods: New orders for core capital goods, or nondefense capital goods excluding aircraft, declined 0.1% in December. Core capital goods are a proxy for capital spending in the U.S. economy.
Shipments: Factory shipments dipped 0.7%, while core capital goods shipments declined 0.6% (with 7.4% year-over-year growth).
The NAM says: “These data are consistent with a manufacturing sector that weakened in the final months of the year amid an uncertain and slowing economic outlook,” said NAM Chief Economist Chad Moutray. “New factory orders soared 8.9% in the first six months of 2022 but edged down 0.3% in the second half of the year.”