Rise in aircraft orders kept overall durable goods orders positive in October: New orders for manufactured durable goods inched up $0.7 billion to $286.6 billion in October, after two consecutive monthly decreases. The largest over-the-month increases occurred in nondefense and defense aircraft and parts, which jumped 8.3% and 16.6%, respectively.
What it means: Although commercial aircraft shipments dropped 11.8% in October amid the Boeing worker strike, aircraft and parts orders increased. Shipments are expected to rise in the coming months following the conclusion of the strike, but it will take time for factory production to ramp up fully again.
No growth in Texas manufacturing activity in November: The production index turned negative again to -0.9, after rising to 14.6 in October. The new orders index pushed further into negative territory, indicating continued declines in demand, and the capacity utilization and shipments indexes both turned negative.
Why it matters: Manufacturers remain optimistic about the future despite demand remaining sluggish, with the future production index and general business activity index reaching three-year highs.
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