Orders for durable goods sank 2% in November, the US government said Monday. This is the biggest decline since May.
Economists had expected a strong 1% rebound in durable-goods orders in November as a result of the end of the General Motors
Orders in October were lowered to a 0.2% gain from the prior estimate of an 0.5% increase.
Orders for total transportation equipment fell 5.9% in November. Orders for cars and parts rose 1.9%. That is weak compared with the roughly 3% gain economists expected from the end of the GM strike. Excluding transportation, orders were flat.
Orders for core capital goods were a bright spot, posting a second straight monthly gain, although that move was a small 0.1% increase.
Orders for primary metals fell 0.3%. Orders for computers rose 0.2% in November.
Big picture:The outlook for manufacturing remains grim, as business sentiment is sluggish, the outlook for profits is soft, and global trade flows shrink given ongoing uncertainty.
Read: (******************** One engine of the US economy is revved up, but another is stalling
What are they saying?
“It’s not a disaster, but business equipment investment was still close to stagnant [in November], ”Said Paul Ashworth, chief US economist at Capital Economics.Market reaction: Stocks ************************** (SPX,) ********************** ( 0.) ************************************************************* (%) ******************** DJIA, 0. (%) ********************************** moved higher in early trading on Monday. (************************************************************************* (Read More) **********************************
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