Durable Goods Orders Fall 2.2% in December, Miss Market Forecasts

Core Orders Miss Expectations

Core durable goods, which exclude volatile transportation items, were forecast to rise by 0.4%, but actual growth came in at a muted 0.3%. Similarly, total durable goods orders were expected to increase by 0.3% but instead posted a significant contraction. Excluding defense, new orders dropped 2.4%, further highlighting subdued demand across sectors.

Implications for Traders

The decline in durable goods orders could signal softening industrial activity, potentially influencing broader market sentiment. The transportation sector’s underperformance may weigh on related equities, while the slight growth in core orders suggests modest strength in non-transportation manufacturing. Traders should monitor economic indicators and corporate earnings from the manufacturing sector for additional insight.