Economic Watch: Durable Goods Orders, New Home Sales Post Second Straight Drops
Following strong growth last year, business spending on equipment has fallen for the second straight month, according to a new report, while a separate one shows new home sales in the U.S. have slipped again.

Following strong growth last year, business spending on equipment has fallen for the second straight month, according to a new report, while a separate one shows new home sales in the U.S. have slipped again.
The drop in business investment during January was revealed in a preliminary Commerce Department report released Tuesday. It showed new orders for manufactured durable goods, items designed to last three years or more, fell 3.7% in January from December, the biggest drop in six months.
The decline was led by a 10% falloff in the volatile new transportation orders category. When they are removed, the overall decline was just 0.3%.
Despite the drop in new orders, shipments of durable goods increased 0.2% in January from December, the eighth gain in the past nine months.
When durable goods orders in January are compared to the same time a year earlier, they are 8.9% higher while shipments have gained 8.2%.
What’s troubling is that new orders for nondefense capital goods minus aircraft, a proxy for business investments, fell 0.2% in January following a December drop of 0.6%. This is the first time these orders have declined for two straight months since May 2016.
According to Reuters, this followed numbers that showed business spending on equipment increased at its fastest pace in more than three years in the fourth quarter of 2017, contributing to the economy's 2.6% annualized growth pace during the final three months of the year.
Analysts at BMO Capital Markets said this and other recent reports showed the U.S. economy is a bit softer in the first quarter of the year when compared to the final quarter of 2017, but they noted the period has some seasonal quirkiness and tends to be weaker. This could result in the Federal Reserve holding off on an expected hike in interest rates when the central bank meets next month.
Single Family Home Sales at Slowest Pace since August
The report follows one from the day before that showed sales of newly built, single-family homes fell 7.8% in January to a seasonally adjusted annual rate of 593,000 units, according to the Commerce Department.
This is the second straight monthly drop. It pushed the annual pace down to its lowest level since last August.
“The moderation in new home sales may be attributable to the interest rate environment, which could be causing short-term market volatility,” said National Association of Home Builders Senior Economist Michael Neal. “However, the underlying economic fundamentals for housing demand remain strong and we expect more prospective home buyers to enter the market in 2018.”
Regionally, new home sales rose 15.4% in the Midwest and 1% in the West. Sales decreased 14.2% in the South and 33.3% in the Northeast.
The report on new home sales followed ones from the week before that showed sales of previously owned homes also fell in January due to a shortage of homes on the market and increasing home prices.
Some analysts have also noted that rising interest rates are pushing some home buyers out of the market, especially those at the lower end of the price spectrum.
More Fleet Management

How Innovative Trucking Leaders Turn Change Into an Advantage
As the pace of change accelerates in trucking, the fleets that adapt best have more than the latest technology. They have cultures that embrace improvement.
Read More →
Freight Broker Bonds Just Got Harder to Get. Here's What That Means for Your Fleet.
When it gets harder for a freight broker to prove they are financially sound, the ones who cannot clear that bar get pushed out of the market. And those are exactly the brokers who used to leave motor carriers holding the bag.
Read More →
Long-Awaited Canadian Border Bridge to Open in Detroit
For trucking, the bridge opening should offer immediate improvements in efficiency and reliability, with new customs facilities, expanded inspection capacity, and direct freeway-to-freeway connections.
Read More →
Aurora Rolls Out Next Generation of Driverless Trucks for Commercial Freight
Aurora's latest autonomous trucks it's rolling out with International feature lower-cost hardware designed for a million miles as the company expands commercial driverless freight operations across the U.S. Sun Belt.
Read More →
Freight Tonnage Down, Rates up, as Lower Capacity Powers Trucking Recovery
The recovery from the freight recession continues to be driven by reduction in capacity rather than by increased demand.
Read More →
Think Your Trucking Fleet Isn't Using Much AI? Think Again
Shadow AI — the use of unauthorized artificial intelligence tools at work — is becoming increasingly common, putting sensitive company data at risk. Learn how trucking fleets can protect sensitive data while embracing AI.
Read More →
ArcBest Consolidates Brands, Cuts Workforce
The company will bring three business units under the ArcBest brand, eliminate about 2% of positions, and expects the changes to generate $40 million in annual savings.
Read More →
Trucking Fleets Faced Record Operating Costs During Third Year of Freight Recession
ATRI's annual operational cost report shows carriers trimmed fleets, delayed equipment purchases, and ran older trucks as expenses continued to outpace freight rates.
Read More →
Michelin Adds AI Assistant to MyConnectedFleet Platform
Michelin’s new generative AI tool delivers instant fleet insights, helping managers analyze fuel use, tire maintenance, vehicle status, and operational performance without manually creating reports.
Read More →
LytxOne Platform Now Features AI, Compliance, and Asset Tracking Tools
New enhancements add AI-powered insights, asset tracking, compliance automation, and configurable privacy controls to Lytx's all-in-one fleet management platform.
Read More →
