The U.S. Census Bureau has released data on durable goods orders for December, which showed that the volume of orders for durable goods in the country contracted at a rate worse than market estimates.
According to the data, durable goods orders shrank by 2.2% in December, which was worse than expectations that suggested a contraction of 0.3%, following a 1.2% drop in durable goods orders in the previous month of November.
At the same time, core durable goods orders - excluding transportation - recorded a growth of 0.3% in December, which also came in below expectations that indicated a 0.4% growth in durable goods orders. The previous reading of the index had shown a contraction of 0.2% in November.
This index is important for measuring the change in the value of new orders submitted to manufacturers on a monthly basis, as it reflects an increase in industrial activity and production. It plays a vital role in the movement of the U.S. dollar, as positive data tends to support the currency, while negative performance can adversely affect the value of the dollar.
