Orders for durable goods increased in November, boosted by orders for capital goods and aircraft.
Orders rose 5.3 percent in November, the Commerce Department said Monday in a report delayed by last year’s government shutdown. This was far in excess of the three percent increase expected.
Core capital goods orders, a proxy for business investment that excludes aircraft and military equipment, increased by 0.7 percent. That beat expectations and followed the October increase of 0.5 percent.
New orders for computer equipment rose 3.8 percent compared with the prior month, and orders for communications equipment rose 4.8 percent. Orders for electrical equipment and appliances climbed 1.7 percent.
Machinery orders rose 0.5 percent, and orders for fabricated metal products jumped 1.0 percent. Orders for primary metals were flat.
Compared with the first 11 months of 2024, orders for capital goods were up 3.1 percent through November. The surge in capital goods orders suggests that the Trump administration’s policies—including reduced immigration and tighter borders, full depreciation for capital expenditures, and tariffs to incentivize domestic production—have been very effective at reinvigorating the U.S. economy despite only having been in place for a handful of months.
Core capital goods shipments rose 0.4 percent, reaffirming the November strength, and were up 2.1 percent rhrough November.
Orders for motor vehicles fell 0.5 percent in November, the second consecutive monthly decline. Year-to-date through November, orders of cars and trucks are up 0.7 percent.
Civilian aircraft orders jumped 97.6 percent. This is a category that is extremely volatile due to the huge price tag of aircraft, particularly large commercial aircraft. Still, aircraft orders are up 111.1 percent year-to-date through November, suggesting genuine strength in demand for U.S.-made aircraft.
Orders for defense capital goods, also a volatile category that is often not linked to the rest of the economy, fell 14.3 percent. Year-to-date through November, orders were up 11.5 percent.