US durable goods orders climb more than expected in November

By Mucahithan Avcioglu

ISTANBUL (AA) - New orders for US-manufactured durable goods rose more than expected in November, climbing 5.3% from the previous month, according to data released Monday by the US Census Bureau.

A measure of the change in value of new purchase orders placed with manufacturers, new orders increased by $16.4 billion to $323.8 billion in November.

The surge followed an upwardly revised 2.1% monthly decline in October, while market expectations had pointed to a 3.1% increase in November.

"Transportation equipment, also up three of the last four months, led the increase, $15.3 billion or 14.7% to $119.3 billion," the bureau said in a statement.

The surge in transportation equipment orders in November was led by a 97.6% spike in civilian aircraft bookings.

Orders also rose for electrical equipment, appliances and components, which increased 1.7% in November after a 0.5% decline in October.

Additional gains were recorded in fabricated metal products, up 1.0% after a 0.8% increase; machinery, up 0.5% following a 0.6% rise; and computers and electronic products, which edged up 0.2% and were unchanged from the previous month.

Orders for non-defense capital goods excluding aircraft — a carefully monitored indicator of business spending plans — increased by 0.7%.

Excluding transportation, new orders rose 0.5% after a 0.1% increase in October, while orders excluding defense climbed 6.6%, reversing a 1.3% decline the previous month.

Durable goods orders data is critical for determining the near-term performance in the industrial sector, which plays a significant role in the US economy.