In December, new orders for core capital goods (nondefense capital goods excluding aircraft) fell 0.6 percent compared with the previous month. November new orders were also revised down to a 0.6 percent decrease from a 0.1 percent decrease. Shipments for core capital goods also fell, decreasing 0.2 percent from November to December. Like new orders, shipments were revised downward for November to a 0.6 percent decrease from a 0.2 percent rise. The weak incoming data indicate that growth in business investment in equipment softened in the fourth quarter and suggest only modest growth over the near term. The December year-over-year growth rate for shipments fell to its lowest level since February 2014, and the annual growth rate for orders ticked up slightly from November.
