Core US Factory Orders Jump More Than Expected In Jan, Aircraft Orders Plunge
Boeing's sales are down in January.
Following the ugly flash durable goods print (de-bound from Boeing bounce in Dec), US Factory Orders for January were expected to drop 1.8% MoM (after a 1.8% MoM rise in Dec). In fact, the headline print fell 1.6% MoM (better than expected). That leaves
US Factory order YoY growth at its weakest since Feb 2021.
Source: Bloomberg
Core factory orders (ex-transports) rose 1.2% MoM, better than the +1.0% MoM expected after a 1.2% decline in Dec...
Source: Bloomberg
The final US Durable Goods Orders print confirmed the 4.5% drop reported in the flash print,
dragging the YoY rise down to +3.1% (its weakest since Mar 2021)
...
Source: Bloomberg
The big swing factor was no Boeing orders as
non-defense aircraft new orders tumbled 54.6% MoM...
Additionally, the value of core capital goods orders, a proxy for investment in equipment that excludes aircraft and military hardware, confirmed it increased 0.8% last month after a downwardly revised 0.3% decline in December, Commerce Department figures showed Monday.
So, all in all, this is 'good' news for the economy and thus 'bad' news for The Fed.