January's durable goods orders did not only plunge but dropped beyond the market projections mainly as the demand on commercial aircraft and business equipment slowed and lost considerable pace; a clear fluctuating demand on motor vehicles and aircraft, having accordingly these orders of durable goods fall to their lowest in three years.
In fact, the Commerce Department of the world's leading economy showed that the durable goods orders throughout the month of January dropped significantly and gloomily by 4.0 percent; worse than the predicted -1.0 percent and prior gain of 3.0 percent while that the durables excluding transportation fell by 3.2 percent; worse than the prior gain of 2.1 percent and the market projections of a 0.0 percent neutral reading. Plus the expiration of tax incentive that took place in the end of last year and allowed full depreciation on equipment purchases also supported a slowdown in investment as the year began whereas the demand on aircraft and motor vehicles is truly becoming unpredictable and therefore is constantly fluctuating regardless of the local or global economical conditions; whether they are cheerful or gloomy.
No wonder that orders for durables excluding transportation equipment decreased by 3.2 percent; the most since October 2010, after a 2.1 percent rise while that demand for transportation equipment fell 6.1 percent due in fact to a 19 percent plunge witnessed in civilian aircraft orders with Boeing Co; the largest aircraft maker, saying that it only received 150 orders last month from actually 287 orders the prior month.
Furthermore bookings for automobiles and parts rose by 0.9 percent in January yet after a 1.1 percent rise the previous month while that orders for machinery plummeted by 10.4 percent; the worse and lowest level in three years along with a drop of primary metals by 6.7 percent and shipments of non-defense capital goods excluding aircraft fell by 3.1 percent; the worse since April 2009.
