U.S. Business-Equipment Orders Lose Momentum With December Drop

(Bloomberg) -- Orders placed with U.S. factories for business equipment unexpectedly fell in December for the fourth decline in five months, suggesting a loss of momentum amid uncertainty over the trade war with China and tighter financial conditions.

Non-military capital goods orders excluding aircraft -- a proxy for business investment -- dropped 0.7 percent from the prior month, according to Commerce Department figures released Thursday after a four-week delay due to the government shutdown. The median forecast in a Bloomberg survey called for a 0.2 percent increase. The broader measure of bookings for all durable goods, or items meant to last at least three years, rose by less than estimated.

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• A separate Labor Department report Thursday showed unemployment-benefit claims fell more than forecast last week, suggesting the job market is regaining its footing following the shutdown.
  
• December's three-month annualized gain for business-equipment shipments picked up to 2.3 percent, while for orders it slid to a 3.4 percent decline.
  
• Excluding transportation, which is volatile and can move on large orders in any given period, durable-goods orders rose 0.1 percent after a 0.2 percent decrease. Defense capital- goods orders fell 7 percent, while durable-goods inventories rose 0.2 percent.
  
• Orders for communications equipment fell the most since March 2017, while machinery and primary metals also showed declines. Motor vehicle and parts orders rose by the most since July.
  
• The durable-goods report’s release, originally scheduled for Jan. 25, was delayed by the five-week shutdown. The Commerce Department said survey response and coverage rates were “at or above normal levels for this release.” A release date for January figures, originally set for Feb. 27, has yet to be determined.
  

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