US Factory Orders: Solid Q4 looking even better in the rearview mirror - Wells Fargo

The December factory orders report revealed a 1.7 percent increase in the month which beat expectations even as the November increase was also revised higher, noted analysts at Wells Fargo. They added, “coming out of the year-end turn, capex is picking up speed.”

Key Quotes: 

“The 1.7 percent increase in December factory orders is the fifth straight monthly increase and it follows a November pickup that was revised up four tenths of a point to a 1.7 percent gain.”

“The initial GDP report for the fourth quarter put the pace of equipment spending growth at 11.4 percent. Today’s report put the 3-month annualized rate of core capital goods shipments at 12.1 percent, which leaves the door open to an upward revision.”

“With Q4 of 2017 now on the books, attention turns to how the GDP report will take shape in the current quarter. The forward-looking core capital goods orders slipped 0.6 percent in December and is now growing at an 11.2 percent annualized rate.”