Demand for U.S. durable goods surged in December, surprising Wall Street with a bigger-than expected-increase.

Meanwhile, U.S. consumer confidence slid in January after having improved moderately in the previous month.

Orders for durable goods rose by 5.2% last month to a seasonally adjusted $226.60 billion, the U.S. Commerce Department said today. Durables, which are goods designed to last at least three years, rose 0.5% in November, revised from a previously estimated 0.1% decrease.

Wall Street expected a smaller increase in durable goods orders during December, with economists forecasting an advance of 2.1%.

A key barometer of business equipment spending — orders for nondefense capital goods excluding aircraft — increased in December by 4.4%, after falling 0.2% in November. Year-to-year, orders were down 1.5%. December shipments for nondefense capital goods excluding aircraft rose by 2.0%, after increasing 0.2% in November; the shipments are used in calculating gross domestic product, which is the barometer for economic growth in the U.S.

Meanwhile, the U.S. Conference Board said that its index of consumer confidence for January fell to 87.9, versus expectations for a reading of 87, and down from a revised 90.6 in December. The December reading was originally reported at 88.6. The index was 87.8 in November.

“The modest improvement in consumer confidence last month was short-lived,” said Lynn Franco, director of the Conference Board’s Consumer Research Center.

The drop in confidence was due to a more negative appraisal by consumers of current business conditions and a job market assessment that is more negative than it was a year ago. Consumers were also downbeat about the short-term future, with a greater proportion expecting business conditions and employment to deteriorate further in the months ahead.

The percentage of consumers anticipating an improvement in their earnings also declined, “and could potentially impact spending decisions,” said Franco.

Data also showed the expectations index fell to 69.6 in January from a revised 75.8 in December. The December level was originally reported as 75.5.

The present situation index, a gauge of consumers’ assessment of current economic conditions, rose to 115.3 in January from a revised 112.9 in December. It was originally reported at 108.3 in December.