Reply To: Traders Market Weekly: Memorial Weekend a Time for Reflection

Helmholtz Watson

Durable goods orders higher in April

The conditions for durable goods orders proved to be reasonably good in April, if not altogether as strong as expected. New orders for durable goods increased 0.4% month-over-month (consensus 0.6%) while new orders for durable goods, excluding transportation, rose 0.3% month-over-month (consensus 0.6%).

The key takeaway from the report is that business spending continued to increase. That view was embedded in the 0.3% increase in nondefense capital goods orders, excluding aircraft, which followed on the heels of a 1.1% increase in March.

New orders for primary metals increased 0.6% after increasing 3.3% in March.
New orders for fabricated metal products slipped 0.1% following a 1.1% increase in March.
New orders for machinery increased 1.0% following a 0.6% increase in March.
New orders for transportation equipment rose 0.6% after declining 0.3% in March, paced by a 4.3% increase in new orders for nondefense aircraft and parts.
Shipments of nondefense capital goods, excluding aircraft, jumped 0.8% after increasing 0.2% in March. This component factors into GDP computations, so it is a positive input for Q2 GDP.