After an unexpected 2.6% MoM surge in November, preliminary December data for US Durable Goods Orders was expected to show a contraction of 0.6% MoM. Analysts got the direction right but the magnitude was far larger as orders tumbled 0.9% MoM...
While orders continue to rise year-over-year, that is the biggest MoM drop since April 2020.
Under the hood, new orders ex-trans. rose 0.4% in December.
However, the value of core capital goods orders, a proxy for business investment in equipment that excludes aircraft and military hardware, was little changed after climbing a revised 0.3% in the prior month.