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US durable goods orders fall in January | US durable goods orders fall in January |
(about 1 hour later) | |
Orders for durable goods in the US fell 5.2% in January, the first fall in five months, as orders for aircraft plunged. | |
But excluding transportation orders, which can be volatile, orders rose 1.9%, the highest rate since December 2011, said the Commerce Department. | |
Factories saw a 6.3% rise in demand for non-defence capital goods, pointing to a rebound in business confidence. | |
Meanwhile, separate data suggested that sales of previously-owned US homes continued to recover in January. | |
href="http://www.realtor.org/news-releases/2013/02/january-pending-home-sales-up-in-all-regions" >The National Association of Realtors said pending home sales rose 4.5% last month to their highest level since February 2007, apart from a brief spike in April 2010, when homebuyers rushed to take advantage of a tax credit that was about to expire. | |
The figure is closely watched by economists and the market as a leading indicator of health in the housing market. It tracks the number of sale contracts that have been signed - something that typically occurs 45 to 60 days before the sale is completed. | |
The rise in pending home sales, and the underlying improvement in durable goods sales, add to evidence that the US economic recovery is gaining momentum. | |
On Tuesday, the US registered a surprisingly strong rebound in consumer confidence for February, and a jump in new home sales in January. | |
Wednesday's data encouraged a further rally on stock markets that saw the Dow Jones Industrial Average rise 0.75%, taking it just above the 14,000 mark once again. | |
Boeing effect? | Boeing effect? |
The latest batch of durable goods data revealed that orders for military aircraft dropped 63.8% in January, as the government tightened its defence spending, while orders for non-defence aircraft fell 34%. | |
Aaron Smith, senior economist at Moody's Analytics, said transportation orders tended to be volatile and were very strong at the end of last year. | Aaron Smith, senior economist at Moody's Analytics, said transportation orders tended to be volatile and were very strong at the end of last year. |
"Non-defence aircraft orders tend to be quite weak in January, so it tends to be seasonal, but we came off a very strong December," he said. | "Non-defence aircraft orders tend to be quite weak in January, so it tends to be seasonal, but we came off a very strong December," he said. |
"The fact we see weakness in this category is not surprising. If we actually look at the Boeing orders, there [were] only two orders in January. | "The fact we see weakness in this category is not surprising. If we actually look at the Boeing orders, there [were] only two orders in January. |
"That might reflect the negative headlines swirling around. That might have attributed to the weakness to some extent." | "That might reflect the negative headlines swirling around. That might have attributed to the weakness to some extent." |
Boeing's 787 Dreamliner planes have been grounded since mid-January after problems with its lithium-ion batteries. | Boeing's 787 Dreamliner planes have been grounded since mid-January after problems with its lithium-ion batteries. |
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