Durable Goods Higher Than Forecasts; FHFA House Prince Index Up

by on December 24, 2013 2:50 pm GMT

Orders for durable goods were higher than forecasts in November, suggesting that US business investment is increasing after falling in the third quarter. Bookings for goods meant to last three years increased 3.5 percent opposed to the .7 percent fall in October, according to the Commerce Department.

“These are very promising signs for business spending,” said Gennadiy Goldberg, an economist at TD Securities USA LLC. Continued growth in demand for autos and homes is beneficial for manufacturing and allows production increases that will help expand growth. Companies could becoming more confident as political uncertainties in Washington D.C. are a little less uncertain.

Non-military aircraft seen a huge 21.8 percent increase. Boeing Co. reported orders for 110 aircraft compared to the 79 aircraft orders in October. Auto demand seen a 3.3 percent increase, the highest since February. Auto sales advanced  to levels not seen since 2007 to an annualized 16.3 million. Orders for non-defense capital goods, ex-aircraft, increased 4.5 percent.

The better than expected durable goods print indicates that the fourth quarter GDP. Shipments that are used to in calculating GDP climbed 2.8 percent.

According to the Federal Housing Finance Agency (FHFA), the monthly House Price Index for October increased .5 percent on a seasonally adjusted basis. September’s print of .3 percent was revised downward to .2 percent. The index is calculated by mortgages sold and/or guaranteed by Fannie Mae and Freddie Mac. The index is also below its April 207 highs by 8.8 percent.