December Durable Goods Orders Fall Less Than Expected as Motor Vehicle Demand Rebounds

03:35 PM EST, 02/18/2026 (MT Newswires) -- Demand for US durable goods dropped less than projected in December, as orders for commercial aircrafts tumbled and the motor vehicle component rebounded, official data showed Wednesday.

Orders for tangible items with an average life of at least three years fell 1.4% sequentially to about $319.63 billion in December, following an upwardly revised 5.4% gain the prior month, the Census Bureau said. The consensus was for a 2% decline for December in a survey compiled by Bloomberg.

Demand for transportation equipment fell 5.3%, following a 15% jump the previous month, as commercial aircraft orders slid about 25%, reversing a 98% surge in November, according to Census Bureau data. The defense aircraft component rose 9.5% after a 3.2% increase in November. Orders for motor vehicles and parts grew 1.2% in December following a 0.3% drop the month before.

"The details reveal there's still some underlying strength in the economy," BMO Capital Markets Senior Economist Priscilla Thiagamoorthy said in a report. "Durable goods (excluding) transportation climbed for a ninth straight month amid solid gains in computers and electronic products."

Computers and electronic product orders rose 3% in December, following a 0.7% gain the month prior, official data showed.

Excluding transportation, durable goods orders advanced 0.9% in December, following a 0.4% gain the month prior. Shipments grew 1% in December, reversing a 0.3% drop the previous month, according to the report.

An initial official estimate of US gross domestic product growth for the fourth quarter is expected to be released Friday.

"The control measure of core shipments (including aircraft) -- the final input for (fourth-quarter) GDP -- rebounded nicely, up 1.8%," Thiagamoorthy said. "That caps off a robust year for business investment, one of the biggest engines of economic growth amid strong (artificial intelligence) spending."

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