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U.S. durable goods orders drop 3.4% in December

Published 01/27/2015, 08:35 AM
© Reuters.  U.S. durable goods orders drop 3.4% last month, core orders down 0.8%
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Investing.com - U.S. durable goods orders fell unexpectedly in December, while core orders also declined, fuelling concerns over the strength of the economy, official data showed on Tuesday.

In a report, the U.S. Commerce Department said that total durable goods orders, which include transportation items, decreased by a seasonally adjusted 3.4% last month, compared to expectations for a gain of 0.5%.

Orders for durable goods in November were revised down to a 2.1% drop from a previously reported decline of 0.9%.

Durable goods are typically bulky or heavy products designed to last at three years, such as trains, planes and automobiles.

Core durable goods orders, excluding volatile transportation items, declined by a seasonally adjusted 0.8% in December, disappointing forecasts for a 0.6% gain.

Core durable goods orders declined by 1.3% in November, whose figure was revised from previously reported drop of 0.7%.

Orders for core capital goods, a key barometer of private-sector business investment, fell by 0.6% last month, worse than expectations for a 0.9% increase and after falling 0.6% in November.

Shipments of core capital goods, a category used to calculate quarterly economic growth, declined 0.2% in December, disappointing forecasts for a 1.0% gain, after falling 0.6% in the preceding month.

EUR/USD was trading at 1.1338 from around 1.1318 ahead of the release of the data, while GBP/USD was at 1.5160 from 1.5140, while USD/JPY was at 117.58 from 117.72 earlier.

The US dollar index, which tracks the greenback against a basket of six major rivals, was at 94.59, compared to 94.75 ahead of the report.

Meanwhile, U.S. stock futures pointed to a lower open. The Dow futures pointed to a loss of 1.5% at the open, the S&P 500 futures fell 1.2%, while the Nasdaq 100 futures slumped 1.4%.

Elsewhere, in the commodities market, gold futures traded at $1,285.90 a troy ounce, compared to $1,282.10 ahead of the data, while crude oil traded at $45.39 a barrel from $45.40 earlier.

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