US: Downside surprise in durable goods orders – TDS

Analysts at TD Securities note that the US durable goods orders surprised to the downside at -2.0% MoM in November, posting its sharpest decline since May.

Key Quotes

“The November figure was closer to our -1.2% projection but fell notably below expectations at +1.5%. The main culprit behind the retreat in orders was a sharp -1.8% m/m decline in the nondefense aircraft segment (largely reflecting Boeing woes), which more than offset a 1.9% gain in vehicle orders. Indeed, orders ex-transportation was actually flat m/m; while core capex orders advanced a soft 0.1% m/m. Separately, core capex shipments actually declined -0.3% m/m, which doesn't bode well for Q4 GDP calculations.”