Make Kitco Your Homepage
News Bites

U.S. Durable Goods Orders Rise 4.9%, Core Rises 1.8% In January

(Kitco News) - The U.S. manufacturing sector found some much needed momentum last month, as orders for durable goods increased, ending two consecutive months of declines, according to the latest data from Department of Commerce.

Thursday, new order of durable goods rose by $11.1 billion or 4.9% to $237.5 billion in January, following December 4.6% drop.

According to consensus forecast, economist were expecting to see a 3.0% rise this month.

Core durable goods, which excludes the volatile transportation sector increased a solid 1.8%, up from December's revised fall of 0.7%. Economists were expecting to see a 0.2% increase.

Although the data was better than expected, Royce Mendes, senior economist at CIBC World Markets, said that the gains are just making up for the weakness from the prior two months. He noted that the three-month annualized trend shows that orders are still down 6.2%.

"Overall, orders were encouraging in January, but we’ll need to see more ahead if business investment is to be a meaningful contributor to growth in 2016," he said.

By Neils Christensen of Kitco News;
Follow Neils Christensen @neils_C



Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
kitco news