New orders for real durable goods totaled $254,795 million in December 2020, which was the highest order total since December 2018. December’s orders were 3.3% more than one year ago, making December the second consecutive month of accelerating growth in durable goods new orders.
Compared with one year ago, a number of industries recorded double-digit growth in December, including:
- motor vehicles and parts – 11.8%
- appliances – 22.8%
- computers/electronics – 10.7%
- power generation – 10.5%
- off-road/construction machinery – 18.3%
The result was that the annual rate of change contracted 7.9%, which was the fourth consecutive month of decelerating contraction. This was the slowest rate of contraction since April 2020.
Consumer durable goods spending is growing extremely fast with month-over-month growth faster than 9% for seven months in a row. Consumer durable goods spending is confirming a bottom in the rate of contraction in durable goods new orders has occurred.
Accelerating Growth: appliances, computers/electronics
Decelerating Growth:
Accelerating Contraction: aerospace, oil/gas-field/mining machinery, ship/boat building
Decelerating Contraction: construction materials, durable goods, fabricated metal products, HVAC, machinery/equipment, motor vehicles/parts, off-road/construction machinery, power generation, primary metals, total capital goods
