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Durable Goods Orders Fall
- Durable goods orders in the US decreased by 4.5% in January after a 5.1% increase in December. Transportation equipment orders were the main driver of the decline, falling by 13.3% in January. The 4.5% decline is the worst data point since the pandemic in April 2020.
- Excluding transportation equipment, durable goods orders increased by 0.7% in January, with a spike in orders for computers and related products and machinery. In addition, orders for non-defense capital goods, excluding aircraft, increased by 0.8% in January, indicating positive business spending.
- The decline in durable goods orders, particularly for transportation equipment, may indicate a temporary slowdown in economic activity. However, the increase in orders for computers and machinery suggests that businesses are still investing in equipment and infrastructure.
- While the data is evidence of a slowing economy, there may be a silver lining in the weakening demand for durable goods’ effect on inflation.
Source: Helios Quantitative Research, Bloomberg
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Helios partners with Financial Advisors to help them grow their business, save time, and add scale to their services through enhanced asset management capabilities. Helios was founded in 2016 in Granite Bay, California.
