Old Man Winter Took A Bite Out Of Boeing Sales In January And That Hit The Whole US Economy
International Business Times
Published Feb 27, 2014 10:14AM ET
Updated Feb 27, 2014 10:25AM ET
By Christopher Harress - Durable goods orders in the U.S. have fallen by 1 percent m/m after commercial aircraft orders dropped by 20.2 percent m/m in January and motor vehicle orders declined by 2.2 percent m/m over the same period. With only 38 orders in January, hugely down from 318 in December, the Boeing Company (NYSE:BA) demonstrates a poor month in the famously volatile aircraft industry.
The decline in motor vehicles sales slowed from a 6.6 percent drop in December to a 2.2 percent slip in January, but this was no surprise given that many of the production plants were periodically closed during the winter.
While overall transportation sales have brought the durable goods figure down, core orders have seen an increase of 1.1 percent m/m. This was primarily due to a 7.3 percent increase in fabricated metals orders, which bounced back from a 6.5 percent in December. In addition, a rebound in defence orders, which jumped from a 29.5 percent slump to a 26.3 percent increase, also helped the figure.
Excluding aircraft sales, non-defence capital goods increased by 1.7 percent m/m and the three-month-on-month annualized growth rate improved to 6.6 percent, indicating that equipment investment is expanding sufficiently.
Paul Ashworth, the Chief U.S. Economist concedes that little will be able to be made from the data until employment data is released and the weather improves.
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Written By: International Business Times
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