–Ex Defense +3.5%; Civ Aircraft Orders +18.9% as Boeing Orders Jump
By Joseph Plocek
WASHINGTON (MNI) – The December durable goods data show the
expected uneven underlying improvement that is consistent with a growing
economy. Moreover, there are no real signs that expiring depreciation
tax credits cut orders late in 2011.
December durables orders printed +3.0%, a bit better than expected;
orders were up 2.1% excluding transport (now up in seven of the last
eight months) and were up 3.5% ex-defense.
Boeing Corp. reported 287 new orders after 96 in November, and the
Commerce Department reported only +18.9% for new civilian aircraft
orders. Severe seasonal adjustment factors anticipated a big gain.
But motor vehicles printed +0.6% and also added to transportation.
Ex-transport orders were mixed, but gains in primary metals (+5.1%)
and machinery (+6.0%) boosted the number. Electronics printed -1.1%,
fabricated metals -1.4%, and computers -2.6%.
Overall this was another decent report with just pockets of
weakness.
Shipments rose 2.1%, and inventories advanced 0.3% for their 24th
consecutive gain. The latter shows that inventories will contribute to
Q4 growth.
Nondefense capital goods shipments were up 2.6% after printing
-2.3% in November and +0.3% October. This suggests that Q4 will see
capital spending edge higher.
For all 2011, new orders were up 10% after posting +15.5% in 2010
and -27.6% in 2009. Shipments were up 7.8% in 2011 after posting +6.2%
in 2010 and -20.7% in 2009.
**Market News International Washington Bureau: (202)371-2121**
[TOPICS: M$U$$$,MU$$$$,M$$FI$,MT$$$$,MAUDS$]
