WASHINGTON (AP) — Orders to U.S. factories for big-ticket manufactured goods rose in December as a big jump in demand for military aircraft offset a sharp decline in commercial aircraft that reflected Boeing’s continued problems with its 737 Max. A key category that tracks business investment fell by the largest amount in eight months.
The Commerce Department said Tuesday orders for durable goods rose 2.4 percent in December, the strongest showing since August. However, excluding defense, new orders would have fallen 2.5 percent.
The category that tracks business investment plans dropped 0.9 percent, the biggest decline since a 1.1 percent setback in April.
Business investment has been hurt over the past year by uncertainties generated by President Donald Trump’s trade war with China. Now that agreement has been reached on a Phase One deal, there is hope that a more stable outlook on trade will convince businesses to start investing again to expand and modernize their operations.
Demand for commercial aircraft fell a sharp 74.7 percent, reflecting the struggles Boeing has had with its troubled 737 Max plane following two fatal crashes.
