New orders for manufactured durable goods in January increased $5.3 billion or2.7% to $200.5 billion, the U.S. Census Bureau announced on Feb. 24. This increase followed three consecutive monthly decreases including a 0.4% December decrease.
Excluding transportation, new orders decreased 3.6%.
Excluding defense, new orders increased 1.9%.
Transportation equipment, also up following three consecutive monthly decreases, had the largest increase, $10.9 billion or 27.6% to $50.5 billion. This was led by to nondefense aircraft and parts, which increased $7.3 billion.
"A three-month-average ending in January of durable goods orders is 9% above the same period one year ago and the three-month-average of nondefense capital goods excluding aircraft orders is up 16%," said Daniel Meckstroth, Chief Economist for the Manufacturers Alliance/MAPI. "Business equipment spending is the bright spot in the economic outlook now and in the future.
The U.S. economy must transition to a greater role for investment and exports and gradually become less reliant on consumer spending growth for our prosperity. With 100% depreciation of business equipment, strong corporate profits, excessive cash flow, rising capacity utilization rates, and moderate GDP growth there is every reason to expect robust capital spending and business equipment production growth this year."