Durable Goods: Solid Gain in Q4 Leaves Scope for Upward GDP Revisions
January 26, 2018
Bottom Line: Bottom Line: Durable goods orders rose in December, climbing at a 18.0% annualized rate in the last three months. That said, this reflects sharp swings in aircraft orders, evidenced by 265 orders at Boeing in December versus 159 in November. Looking at the past 12 months, hardgood orders have increased at a 11.5% annualized rate.
- Nondefense capital goods shipments ex-aircraft, proxies for equipment and software investment, are sharply above their Q3 level, suggesting that capital spending's contribution to Q4 GDP growth will likely be revised higher.
Article by
Contingent Macro Advisors