U.S. durable goods orders likely rose in December on increase in aircraft orders

The U.S. headline durable goods orders are expected to have jumped in December, owing to a rise in aircraft orders. In November, Boeing had recorded just 13 orders; however, in December the number of orders rose sharply to 290. This is expected to have led to a rise in non-defense aircraft in the durables report of as much as USD 18 billion, said Societe Generale.

The outright level of non-defense aircraft orders might mark the highest of the year and this is rarity within the longer history of the series. Thus there might be certain risks on the downside to the headline figure projection, noted Societe Generale in a research report. However, the orders data and Boeing’s listed prices for the particular orders, indicate towards a considerable rise.

Stripping transportation, orders are expected to have dropped by around 0.3 percent. In the meantime, non-defence capital goods orders had risen surprisingly by 0.9 percent in November; however it is expected to have dropped slightly in December, with the series possibly recording an unchanged reading, added Societe Generale.