Demand For U.S. Durable Goods Decreased In November
U.S. durable goods are goods produced in the U.S. that are meant to last at least three years.
Economists had predicted that demand would increase by 1.2%. The data on changing demand was provided by the Commerce Department.
The decrease in overall demand for U.S. durable goods is because of a large drop in orders for military equipment. The number of orders for military equipment dropped 35.6% in November.
Additionally, changing production rates of airplanes have also led to the decreased demand. Orders for airplanes fell 1.8% in November. This is partially a result of Boeing deciding to halt its production of 737 Max jets as it seeks approval from the FAA on its repairs to the MCAS, a major culprit of the two crashes. The number of orders for planes are 38% lower compared to rates in November of 2018.
However, if you do not take into account demand for military equipment and airplanes, demand for U.S. durable goods increased 0.1% in November. Demand is expected to increase as the U.S.-China trade war deescalates.