Orders for big-ticket U.S. durable goods increased by the most in six months in January.
A surge in orders for aircraft helped pull orders up 3.4% in January to a seasonally adjusted $256.6 billion, according to the Commerce Department. Most economists surveyed had anticipated an increase of 1%.
The January increase becomes the ninths straight months of gains and the largest increase (percentage wise) since July 2020. It follows an uptick of 1.2% in December and a gain of 1.3% in the months of November suggesting the U.S. economy is on a healthy trajectory despite the challenges of Covid-19.
Excluding transportation equipment, durable goods orders were still up an impressive 1.4%. Nonetheless, down slightly from the 1.7% gain in December.
In sum, a strong report that suggests our economy is on the right trajectory. Strong durable goods combined with greater consumer confidence (which rose in February for the second straight month) is an increasingly positive combination.