Washington, DC, January 27—-Durable goods orders increased 0.6 percent in December, despite large declines in civilian aircraft and defense goods, the Commerce Department said Thursday.
The growth in orders was driven by communications equipment, machinery and motor vehicles
The result was largely in line with expectations of a 0.9 percent gain, once the upward revision in November's data is considered. November's increase in orders was revised to 1.8 percent from 1.4 percent previously.
Excluding the 3 percent drop in transportation goods orders, December orders rose 2.1 percent, the best in three months. Aircraft orders declined 37.3 percent, while motor vehicle orders increased 4.6 percent.
Excluding defense, orders increased 1.2 percent. Orders for defense capital goods fell 8.8 percent.
Orders for core capital goods (which exclude both defense and aircraft) increased 1.8 percent, signifying strong investment by businesses as the year ended. A special tax break for investment goods expired at the end of the year.
For all of 2004, orders increased 10.9 percent over 2003, the largest gain in at least 10 years.
Shipments increased 2.1 percent in December, led by transportation equipment.
For all of 2004, shipments increased 10.3 percent.
Inventories fell fractionally after rising for 12 consecutive months. Unfilled orders increased 0.5 percent to a record level.
