In December 2024, the United States saw a further decline in its durable goods orders, as reported in the latest data update on January 28, 2025. After a -1.1% drop in November 2024, the orders plummeted by a further -2.2%, marking a more pronounced decrease from the previous month.
This month-over-month comparison highlights a significant and concerning trend for the U.S. economy, as the decrease indicates potential sluggishness in manufacturing and business investments. These orders encompass a range of long-lasting goods such as machinery, vehicles, and appliances, which often serve as an economic bellwether for future production and economic health.
The continuous drop in durable goods orders could signal potential challenges ahead for the U.S. economy, suggesting a potential weakening in business confidence or shifts in consumer demand. As these indicators typically precede changes in economic momentum, stakeholders will closely monitor upcoming reports for any signs of stabilization or further decline.