In November, US durable goods orders declined more severely than analysts had anticipated, primarily driven by significant decreases in transportation equipment and electronics, including computers, as reported by government data. According to the Census Bureau, orders for durable goods, which are tangible items expected to last at least three years, decreased by 1.2% month-over-month to approximately $284.71 billion.
This figure was revised down from an earlier estimate reflecting a 1.1% decline. Wall Street analysts had projected a smaller contraction of only 0.4%, based on a survey by Bloomberg. This performance follows an uptick of 0.7% in durable goods orders during October. Additionally, durable goods shipments experienced a 0.2% decrease in November after a 0.5% drop the previous month. The new orders for transportation equipment saw a noteworthy decline of 3% in November, with nondefense aircraft and parts plummeting by 7%.
The defense-related orders also faced challenges, decreasing by 2.6%. Interestingly, motor vehicles and parts reported a slight increase of 0.9%, contrasting with the advance report that anticipated a decrease of 0.3%. In October, the civilian and defense aircraft categories had significant gains, soaring by approximately 16% and 19%, respectively, reflecting a prior strength in these sectors. Fabricated metals recorded a decline of 1.7% in November, while the other sector involving computers and electronic products eased down by 0.5%.
The overall factory orders dropped by 0.4% to $586.14 billion, aligning with the consensus forecast from market observers. Meanwhile, nondurable goods orders managed to rise by 0.4%, following a previous increase of 0.2% in October. Excluding the transportation sector, factory orders showed a modest rise of 0.2%, with notable improvements within machinery, primary metals, and electrical equipment and appliances sectors..