Washington, DC, January 26, 2006—Orders for durable goods rose 1.3% in December, despite a large decline in aircraft orders, according to the Commerce Department.
The 1.3% gain was stronger than the 0.5% expected by economists.
November's orders were revised higher by a full percentage point to 5.4%.
Unfilled orders rose 2.4%. Inventories were flat. Orders for motor vehicles climbed 6.6%. Defense aircraft orders increased 30.8%.
Durable-goods orders had been propelled in October and November by large increases in civilian aircraft bookings. In December, other sectors stepped up to offset an 8.1% decline in aircraft orders.
In all of 2005, orders for durable goods increased 8.2%, while shipments increased 6.2%. The figures are not adjusted for price changes. In 2004, orders had increased 10% and shipments rose 10.3%.
Core capital-goods orders increased 10.4% in 2005, while shipments rose 10%.
December's surprising strength in shipments could lead economists to revise upward their estimates for fourth-quarter gross domestic product. The GDP figures will be released Friday, with economists currently expecting annualized growth of 2.7%.
In December, orders were led by a 6.5% gain in machinery orders. Orders for transportation equipment increased 1.9%, while orders for fabricated metals rose by 1.3%.
Orders for electronics fell 1.1%, while orders for electrical equipment dropped 2.8% and orders for primary metals skidded 2.2%.
Shipments were led by a 6.5% increase in transportation goods, while machinery shipments rose 4.9% and shipments of electronics increased 3%.
Shipments of fabricated metals rose 1.9%, with shipments of primary metals gaining 1.1%.
Shipments of electrical equipment fell 1.5%.
Inventories of durable goods were unchanged in December. They rose 3.9% for the year.
