US durable goods orders fall sharply on drop in those for jets

Spending by US companies on goods meant to last more than three years fell by more than anticipated during the previous month, even if chiefly due to the volatility in those for aircraft .

According to the Department of Commerce, in seasonally adjusted terms, total new orders for durable goods shrank by 2.1% month-on-month (consensus: -0.8%) to $270,644bn in November.

In comparison to a year ago, orders were up 10.5%.

And excluding the transportation sector orders edged up by 0.2% versus October (consensus: 0.2%) to $178,970bn.

Nonetheless, orders ex-transportation rose by only 0.1% in October and fell by 0.9% in September.

Revisions to monthly growth rates for total orders totalled a net -0.3% and -0.4% when transportation was excluded.

Orders for non-defence aircraft and parts plummeted by 36.4% to $12.28bn.

If one left just defence out meanwhile orders were off by 2.6% on the month to $252,822bn.

Orders for capital goods excluding aircraft and defence edged higher by 0.2% (Barclays Research: 0.0%) to roughly $83.34bn and were up by 8.8% in annual terms.