New Orders For U.S. Manufactured Durable Goods Soared In January

Reflecting a substantial rebound by orders for transportation equipment, the Commerce Department released a report on Thursday showing new orders for U.S. manufactured durable goods surged by more than expected in the month of January.

The Commerce Department said durable goods orders shot up by 3.1 percent in January after tumbling by a revised 1.8 percent in December.

Economists had expected durable goods orders to jump by 2.0 percent compared to the 2.2 percent slump that had been reported for the previous month.

Excluding the sharp increase in orders for transportation equipment, durable goods orders were unchanged in January after inching up by 0.1 percent in December. Ex-transportation orders were expected to rise by 0.3 percent.

The Labor Department also released a report on Thursday showing first-time claims for U.S. unemployment benefits climbed much more than expected in the week ended February 22nd.

The report said initial jobless claims rose to 242,000, an increase of 22,000 from the previous week’s revised level of 220,000.

Economists had expected initial jobless claims to inch up to 221,000 from the 219,000 originally reported for the previous month.

The Labor Department said the less volatile four-week moving average also crept up to 224,000, an increase of 8,500 from the previous week’s revised average of 215,500.

A separate report released by the Commerce Department on Thursday showed the U.S. economy grew in line with its preliminary estimate in the fourth quarter of 2024.

The Commerce Department said gross domestic product jumped by 2.3 percent in the fourth quarter, unchanged from the previous estimate. Economists had expected the pace of GDP growth to be unrevised.

The report said upward revisions to government spending and exports were offset by downward revisions to consumer spending and investment.

The fourth quarter GDP growth reflects a notable slowdown compared to the 3.1 percent surge seen in the third quarter of 2024.

Kansas City Federal Reserve President Jeffrey Schmid is due to speak on monetary policy and the economic outlook before a U.S. Department of Agriculture 101st Agricultural Outlook Forum, “Meeting Tomorrow’s Challenges, Today,” at 9:15 am ET.

At 10 am ET, the National Association of Realtors is scheduled to release its report on pending home sales in the month of January. Pending home sales are expected to slump by 1.3 percent in January after plunging by 5.5 percent in December.

Federal Reserve Vice Chair for Supervision Michael Barr is also due to speak on “Novel Activity Supervision” at the the Bank and Fintech Arrangements TechSprint event at 10 am ET.

At 11:45 am ET, Federal Reserve Board Governor Michelle Bowman is scheduled to speak on “Community Banking” at the Fort Hays State University Robbins Banking Institute Lecture Series.

Cleveland Federal Reserve President Beth Hammack is due speak on “Financial Stability” before the Columbia University/Bank Policy Institute: 2025 Bank Regulation Research Conference at 1:15 pm ET.

At 3:15 pm ET, Philadelphia Federal Reserve President Patrick Harker is scheduled to speak on the economic outlook before the Lyons Economic Forecast, presented by the University of Delaware’s Center for Economic Education and Entrepreneurship.