Durable Goods Orders Point to Ongoing Manufacturing Growth
2/25 9:13 AM
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. (c) Copyright 2021 DTN, LLC. All rights reserved.
 
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