Durable Goods Rise 3.4%

Finally, some good news for durable goods. Orders rose 3.4% last month, but that was largely driven by a 64.9% surge in aircraft orders. Ignoring that, the category is still weak.

But a key proxy for business investment continued to show signs of weakness. Orders for nondefense capital goods excluding aircraft fell 0.8% during April. Through the first four months of the year, the category is down 4.1%, compared to the same period in 2015. Overall orders are up 0.8% so far this year, supported by demand for planes and military equipment.

Durable-goods figures can swing widely from month to month and are subject to large revisions. March durable orders were revised up to a 1.9% increase from a previously estimated 0.8% gain. February orders were revised down to a 3.3% decline.

Excluding transportation, new orders in April rose a modest 0.4%. Excluding defense orders, another volatile category, orders increased 3.7% last month.

Here’s durable goods excluding aircrafts:

Posted by on May 26th, 2016 at 9:30 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.