The U.S. Commerce Department reported on Tuesday that the durable goods orders surged 2.4 percent m-o-m in December, following a revised 3.1 percent m-o-m decrease in November (originally a 2.0 percent m-o-m decline). That was the largest monthly drop since May.

Economists had forecast a 0.4 percent m-o-m increase.

According to the report, orders for durable goods excluding transportation edged down 0.1 percent m-o-m in December, following a revised 0.4 percent m-o-m decrease in November (originally unchanged m-o-m) and missing market expectations of 0.2 percent m-o-m rise.

Meanwhile, orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, dropped 0.9 percent m-o-m in December after a revised 0.1 percent gain m-o-m in November (originally a 0.2 percent m-o-m advance). That marked the largest monthly fall since April. Economists had called for a zero percent m-o-m changed in core capital goods orders in December.

Shipments of these core capital goods decreased 0.4 percent m-o-m in December after an unrevised 0.3 percent m-o-m decline in the prior month.