Economic Reports 01/29/08

Summary: 2nd consecutive increase, however... shipments declining, while inventories build, 4 out of 5 months.

Electrical, semiconductor, appliance, automotive and all other durable goods orders & shipments declining.

Durable Orders Dec +5.2% vs prior +0.5% Full Report

Inside the number: prior revised up from -0.1%. Ex transport orders +2.6%; ex defense +2.9%;

The big boost: defense capital goods orders +80.6%; defense aircraft & parts orders +138.1%; non defense aircraft & parts orders +11.7% vs prior +28.6%

Non-defense capital goods +5.5% vs prior +5.4%; ex-aircraft, a proxy for future business investment, +4.4% vs prior -0.2%.

Shipments -0.1% vs prior -0.2%; Inventories +1.1% vs prior +0.8%; electrical equipment, appliances orders -1.4%; shipments -0.7%;

motor vehicles & parts orders -1.5%; shipments -2.3%; semiconductor shipments -8.8% vs prior -0.7%.

All other durable goods orders -0.3% vs prior -1.1%; shipments -0.3% vs prior -0.9%