US: Aggregate factory orders likely to be pushed up - Nomura

In the US, November aggregate factory orders will likely be pushed up by an outsized increase in transportation equipment orders, according to analysts at Nomura.

Key Quotes

“Based on the advance report by the Census Bureau, durable goods orders excluding transportation fell 0.1%, but October orders were revised up notably to a 1.3% gain, which would be consistent with the elevated momentum in the industrial sector which we expect will continue in the near term.”

“A 0.3% increase in core capital goods shipment in November and an upwardly revised 1.3% gain in October indicate elevated equipment investment in Q4. This appears consistent with elevated business sentiment in December. In particular, the ISM manufacturing index exceeded our and markets’ expectations in December, rising to 59.7 from November’s 58.2. Looking ahead, we expect the manufacturing sector to continue to support healthy economic growth.”