Before the opening bell, the Commerce Department reported that orders for long-lasting durable goods jumped up 2.9% in December, well above the expected reading of .6%. Durable Goods Orders reflect the new orders placed with manufacturers for immediate and future delivery of factory goods.
The impressive data is great news for American manufacturers, specifically the industrial and manufacturing sectors as domestic and global economic growth remain at high levels.
As you can see in the chart, orders have increased in 4 out of the last 5 months.
Source: Bloomberg.com
The Commerce Department also issued the GDP report before the opening bell today. Gross Domestic Product rose by 2.6%, but it was below the expected 2.9% improvement, and below last months reading of 3.2%.
Source: Bloomberg.com
Net exports, and inventories were the drags on the report mainly due to the widening trade deficit.
But on the positive, Consumer Spending was up 3.8%, Residential investment grew by a 11.6% annualized rate, business spending improved by 6.8%, and Government purchases were up 3.0%. So overall, the GDP was mixed, and not overly negative.
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