U.S. durable goods orders likely to have contracted in December

The U.S. durable goods data for the month of December is set to release tomorrow. According to a Barclays research report, the durable goods orders are likely to have dropped in the month.

“We expect durable goods orders to contract 0.5 percent m/m in December on the heels of November’s 2.1 percent m/m decline”, said Barclays.

With the latest Boeing reports indicating towards significant falls in nondefense aircraft orders last month, December’s weakness is expected to be focused again in the volatile transportation category.

Stripping transportation, orders are likely to have come in flat after November’s 0.1 percent sequential fall. Available indicators also indicate towards further softness in the core capital goods category, where orders are likely to have dropped 0.3 percent after November’s 0.2 percent sequential fall, added Barclays.