Weak Rebound in Durable Goods

The Fed is meeting today and tomorrow, and we’ll get our first look at Q1 GDP on Thursday. Ahead of that, today we learned that durable goods rebounded last month, but not by much.

Orders for long-lasting U.S. manufactured goods rebounded less than expected in March as demand for automobiles, computers and electrical goods slumped, suggesting the downturn in the factory sector was far from over.

The Commerce Department said on Tuesday that orders for durable goods, items ranging from toasters to aircraft meant to last three years or more, increased 0.8 percent last month after declining 3.1 percent in February.

Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, were unchanged after a downwardly revised 2.7 percent decrease in the prior month. These so-called core capital goods orders were previously reported to have decreased 2.5 percent in February.

Economists polled by Reuters had forecast durable goods orders advancing 1.8 percent last month and orders for manufactured capital goods increasing 0.8 percent.

Posted by on April 26th, 2016 at 11:50 am


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