On Friday, December 22, data released by the U.S. Department of Commerce showed that U.S. durable goods orders surged in November, mainly benefiting from a surge in aircraft orders. However, in a high-interest rate environment, corporate spending on equipment appears to be somewhat weak.
U.S. durable goods orders in November came in at a preliminary month-on-month reading of 54%, the largest increase since December 2022 and significantly higher than the expected 24%, from -5 in October4% upward revision to -51%。Orders in November increased by 4 percent year-on-year5%。
Durable goods are items that can be used for at least three years, such as cars, computers, household appliances, airplanes, communication equipment, and they represent a very important component of a business's investment expenditure.
U.S. durable goods orders excluding transportation in November were 05%, again higher than the expected 01%, the previous value in October was revised down to -0 from 0%.3%。
U.S. November core capital goods orders, non-defense capital durable goods orders net of aircraft, were **08%, also significantly higher than the expected 01%，The pre-October value was revised downward, from 0 month-on-month3% downward revision to 0 m/m6%。The data on core capital goods orders is closely watched by the market as it measures business spending plans.
Core capital goods shipments in November were 01%。Shipments of non-defense capital goods were 05%, reversing the previous October**03% dynamics. These shipments are included in the calculation of equipment spending in the U.S. gross domestic product (GDP) report. U.S. corporate equipment spending contracted in the third quarter, in stark contrast to the quarter's GDP growth of 4.4 annualized9%。
Transportation equipment orders in November were sharply **153%, reversed October 134% plunge. The sharp decline in civil aircraft orders has been a serious drag on the previous October data, while commercial aircraft orders soared by 80 percent in November1%。Boeing reported on its ** that it has received orders for 114 commercial aircraft, 90 of which are for the more expensive 777X family.
In addition, with the end of the United Auto Workers (UAW) general strike, auto and parts orders**28%。
Orders for electrical equipment, appliances and parts, primary metals, machinery, and computers and electronics increased.
U.S. manufacturing accounts for about 10 percent of the country's economy3%, with the Federal Reserve's aggressive interest rate hikes, the manufacturing industry is in a downturn and developing slowly. Despite the current accommodative financial conditions and the expected Fed rate cut next year, there are signs that businesses are reducing inventory accumulation in anticipation of weaker demand, so economic activity is likely to remain tepid.
Some analysts said that the durable goods orders data was higher than expected, but some of the growth in the core total was only a reflection of the downward revision of the previous data.
After the release of the data, the U.S. dollar index** rose more than 10 points to 10173。U.S. stocks *** lower, and the Nasdaq 100 index** fell 01%。The yield on the U.S. 10-year Treasury note rose to 3886%。Spot *** did not fluctuate much, reported at 2061$82 oz. 
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