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In November, the U.S.  Durable goods orders rise thanks to airline – December 22, 2023 at 3:03 pm

In November, the U.S. Durable goods orders rise thanks to airline – December 22, 2023 at 3:03 pm

US durable goods orders rose in November, boosted by aircraft orders, but business spending on equipment appeared weak amid higher borrowing costs.

The Commerce Department's Census Bureau said Friday that orders for durable goods ranging from toasters to airplanes and those with a life expectancy of three years or more rose 5.4% last month. October data was revised upwards to show orders fell 5.1% instead of the previously reported 5.4%.

Economists polled by Reuters had expected durable goods orders to rise 2.2%. Orders rose 4.5% in November year-on-year.

Manufacturing, which accounts for 10.3% of the economy, continues to be hampered by high interest rates. Despite easing financial conditions and the prospect of an interest rate cut next year, activity remains subdued as there are signs that companies are slowing building inventory in anticipation of weaker demand.

Auto orders rose 15.3% last month after falling 13.4% in October. Motor vehicle and motor vehicle parts orders rose 2.8% as strikes by the United Auto Workers ended.

Civil aircraft orders increased by 80.1%. Boeing said on its website that it had received 114 orders for commercial jets, including 90 orders for the more expensive 777X series. There were 123 more orders in October.

Orders increased for electrical equipment, fixtures and components, primary metals, machinery and computers and electronic products.

New orders for capital goods excluding aircraft, a widely followed indicator of planned business spending, rose 0.8% after falling 0.6% in the previous month. Orders for these key capital goods fell 0.3% in October.

Exports of key capital goods fell 0.1% for the second month in a row. Exports of non-defense capital goods rose 0.5% after falling 0.3% in the previous month.

These exports are included in the calculation of capital expenditures in the GDP report. Business spending on equipment decreased in the third quarter. The economy grew at an annualized rate of 4.9% in the last quarter. (Reporting by Lucia Muticani; Editing by Andrea Ricci)