Aircraft lead January boom in big-ticket US manufactured goods

WASHINGTON: US manufactured goods orders increased far more than expected in January, according to government data released Friday, driven by a big increase in aircraft sales.

The Commerce Department reported durable goods sales rose 1.6 per cent last month, while December”s 0.9 per cent slump in sales was revised sharply upwards to show a 1.2 per cent gain.

Much of the increase was led by transportation equipment where orders rose 3.4 per cent overall, with sales of nondefense aircraft such as Boeing”s jets increasing 15.6 per cent.

“Solid goods demand and plenty of backorders will keep manufacturing on a very healthy course even as spending tilts in favor of in-person services,” Oren Klachkin of Oxford Economics said.

“And we should see better supply-side news as shipping bottlenecks slowly clear, input shortages diminish, and Americans return to the job market,” though he warned the war in Ukraine could stress supply chains anew.

Excluding transportation, overall orders rose 0.7 per cent, slightly weaker than December”s growth.