Durable Goods Orders Point to Ongoing Manufacturing Growth


   
   WASHINGTON, D.C. (DTN) -- After rising for eight consecutive months, durable 
goods orders continued their uptrend in January, jumping 3.4% last month, 
driven by sharp increases in core goods and shipments, according to data 
published this morning by the U.S. Census Bureau. January's increase was the 
largest since June 2020 when the economy first emerged from a nationwide 
lockdown, unleashing pent-up demand from weeks of quarantine in spring.

   Further details of the report revealed new orders, excluding defense, 
increased 2.3% from the previous month, with transportation leading with a 7.8% 
gain. Non-defense new orders for capital goods in January increased 6.5% after 
an upwardly revised 1.5% gain in December. Shipments of manufactured durable 
goods in January, up eight of the last nine months, increased 2% following a 
2.1% December increase. Machinery, also up eight of the last nine months, 
increased 3.6%.

   These data points bode well for domestic manufacturers at the start of 2021 
as services begin a slow recovery following yearlong restrictions on business 
operations. Analysts note fiscal relief paired with widespread vaccinations and 
prospects of infrastructure spending later this year should further support 
business activity in the months ahead.

    

    

   Liubov Georges, 1.646.359.4088, liubov.georges@dtn.com, http://www.dtn.com.




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