US durable goods orders (preliminary) for November 5.4% vs 2.2% estimate

<ul><li>Prior month -5.4% revised to -5.1% </li><li>Durable goods 5.4% vs 2.2% est</li><li>Ex transportation 0.5% vs 0.1% est. Prior month 0.0%</li><li>Ex defense 6.5% vs -6.7% last month </li><li>Non-defense capital good ex air 0.8% vs 0.2% estimate. Prior month -0.3%</li></ul><p>The quick look at the data shows better than expected. NOTE that durable goods orders can be volatile as they do represent big ticket items that can be out of one month but in another month. The see saw of the two months with a gain of 5.4% vs -5.1 last month is indicative. Nevertheless, the overall data was better than expectations this month.</p><p>A more detailed summary from the Census Department can be found below: </p><p>A detailed look at the Shipments of Durable Goods:</p><ul><li><p>Overall Shipments of Manufactured Durable Goods</p><ul><li>Increased in November after two consecutive monthly decreases.</li><li>Rose by $2.9 billion or 1.0 percent, reaching $283.2 billion.</li><li>Followed a 0.8 percent decrease in October.</li></ul></li><li><p>Transportation Equipment Shipments</p><ul><li>Also increased after two consecutive monthly decreases.</li><li>Led the overall increase in shipments.</li><li>Grew by $2.0 billion or 2.3 percent, totaling $90.3 billion.</li></ul></li></ul><p>A detailed summary of Unfilled Orders:</p><ul><li><p>Overall Unfilled Orders for Manufactured Durable Goods</p><ul><li>Increased in November, marking an increase in eleven of the last twelve months (shows a backlog)</li><li>Rose by $17.1 billion or 1.3 percent, reaching a total of $1,374.9 billion.</li><li>Followed a 0.4 percent increase in October.</li></ul></li><li><p>Unfilled Orders in Transportation Equipment</p><ul><li>Also increased in eleven of the last twelve months (shows a backlog of orders).</li><li>Drove the overall increase in unfilled orders.</li><li>Grew by $17.5 billion or 2.0 percent, totaling $878.4 billion.</li></ul></li></ul><p>A detailed look at Inventories of Durable Goods:</p><ul><li><p>Overall Inventories of Manufactured Durable Goods</p><ul><li>Increased in November, marking four consecutive months of growth (with unfilled orders, the inventories seem to be intentional).</li><li>Rose by $0.4 billion or 0.1 percent, reaching a total of $524.8 billion.</li><li>Followed a 0.2 percent increase in October.</li></ul></li><li><p>Inventories in Transportation Equipment</p><ul><li>Also increased for four consecutive months.</li><li>Led the overall increase in inventories.</li><li>Grew by $0.2 billion or 0.1 percent, totaling $165.9 billion.</li></ul></li></ul><p>A detailed look at Capital Goods:</p><p>Nondefense Capital Goods</p><ul><li>New Orders<ul><li>Increased $14.8 billion or 17.1 percent to $101.4 billion in November.</li></ul></li><li>Shipments<ul><li>Increased $0.4 billion or 0.5 percent to $83.2 billion.</li></ul></li><li>Unfilled Orders<ul><li>Increased $18.2 billion or 2.3 percent to $820.3 billion.</li></ul></li><li>Inventories<ul><li>Increased $0.5 billion or 0.2 percent to $227.4 billion.</li></ul></li></ul><p>Defense Capital Goods</p><ul><li>New Orders<ul><li>Decreased $1.9 billion or 12.0 percent to $13.6 billion in November.</li></ul></li><li>Shipments<ul><li>Increased $0.1 billion or 1.0 percent to $14.1 billion.</li></ul></li><li>Unfilled Orders<ul><li>Decreased $0.5 billion or 0.2 percent to $211.6 billion.</li></ul></li><li>Inventories<ul><li>Increased $0.3 billion or 1.1 percent to $24.5 billion.</li></ul></li></ul>

This article was written by Greg Michalowski at www.forexlive.com.