In the latest economic update, the U.S. commerce department reported a decline in non-defense capital goods orders excluding aircraft for December 2024, with the indicator slipping from 0.7% in November to 0.5%. The data, updated on January 28, 2025, reflects a deceleration in month-over-month growth within this sector.
This decline marks a slowdown in the manufacturing industry’s momentum as the U.S. transitions from the end of the year into the new. The previous month of November saw a robust 0.7% increase, suggesting stronger business investments at that time. However, the new figures for December suggest a cooling period where businesses may be exhibiting caution.
This ease down in orders could be due to a host of factors, including economic uncertainties, supply chain disruptions, or a possible reassessment of business investments post-holiday season. With non-defense capital goods orders excluding aircraft often viewed as a key indicator of business spending plans, these figures could potentially signal changes in economic confidence or future business activity in the U.S. economy. Moving forward, analysts and businesses alike will keep a close watch as they assess the broader implications for the first quarter of 2025.