US Durable Goods Orders Contract 1.4%
U.S. durable goods orders fell 1.4% month-on-month in December 2025, according to late-release data. This decline was milder than analysts' forecasts of a 2% contraction, following a sharp 5.4% increase in orders in November (revised upward).
The decline was primarily driven by a 5.3% decline in the transportation equipment category, led by a 25.9% drop in orders for nondefense aircraft and parts. This component is known for its volatility, often making durable goods headlines appear more extreme than actual demand conditions.
Outside of transportation, data actually showed improvement. Orders excluding transportation rose 0.9%, higher than the 0.3% expected, after November's increase was revised down to 0.4%. However, excluding defense, orders fell 2.5% after a 6.6% surge the previous month.
In the investment category, capital goods orders generally fell 3.9%, but there were bright spots in several segments. Orders for defense aircraft and parts rose 9.5%, and for computers and electronic products increased 3%, indicating that demand in certain sectors remains quite solid.
A widely watched indicator for corporate spending plans—non-defense capital goods excluding aircraft—rose 0.6%, after rising 0.7% in the previous month (revised upward). Annually, new orders for durable goods increased 7.8% in 2025 compared to the previous year, signaling that long-term demand trends remain strong despite monthly fluctuations. (yds)
Source: Newsmaker.id
