Aircraft lead January boom in big-ticket US manufactured goods
Aircraft lead January boom in big-ticket US manufactured goods
US manufactured goods orders increased far more than expected in January, according to government data released Friday, driven by a big increase in aircraft sales.
The Commerce Department reported durable goods sales rose 1.6 percent last month, while December's 0.9 percent slump in sales was revised sharply upwards to show a 1.2 percent gain.
Much of the increase was led by transportation equipment where orders rose 3.4 percent overall, with sales of nondefense aircraft such as Boeing's jets increasing 15.6 percent.
"Solid goods demand and plenty of backorders will keep manufacturing on a very healthy course even as spending tilts in favor of in-person services," Oren Klachkin of Oxford Economics said.
"And we should see better supply-side news as shipping bottlenecks slowly clear, input shortages diminish, and Americans return to the job market," though he warned the war in Ukraine could stress supply chains anew.
Excluding transportation, overall orders rose 0.7 percent, slightly weaker than December's growth.
However, sales of motor vehicles and parts dropped 0.4 percent last month after rising in December, as assembly lines continue to grapple with shortages of semiconductors crucial to making vehicles.
Defense aircraft and parts fell 41.1 percent, while communication equipment sales decreased 6.6 percent.
Machinery orders rose 2.3 percent, and computers and related products climbed 2.2 percent, according to the data.
H.Davies--TNT
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