The US economy appears resolute in the face of onslaught of rising rates, pessimism and inflation hitting the American manufacturing sector. Durable goods orders showed an unexpected increase in headline orders while the March increase was revised even higher. More significantly that nondefense capital goods orders excluding aircraft, a proxy for business spending increased 1.4% month-over-month.
Durable goods orders rose 1.1% month-over-month in April, much stronger than (consensus -1.0% and following an upwardly revised 3.3% increase (from 3.2%) in March. Excluding transportation, durable goods orders fell 0.2% month-over-month in April (consensus -0.1%) following a 0.3% increase in March.
US Durable Goods April 2023
- US Durable Goods Orders Apr P: 1.1% (est -1.0%; prevR 3.3%)
- US Durables Ex Transportation Apr P: -0.2% (est -0.1%; prevR 0.3%)
- US Cap Goods Orders Nondef Ex Air Apr P: 1.4% (est -0.1%; prevR -0.6%)
- US Cap Goods Ship Nondef Ex Air Apr P: 0.5% (est 0.1%; prevR -0.2%)
- Demand for transport equipment was up 3.7%, as a sharp increase in demand for defense aircraft (32.7%) was enough to offset declines in orders for civilian aircraft (-8.3%) and vehicles (-0.1%).
- Demand was also up for machinery (1.0%), while decreases were reported for computers and electronic products (-1.4%), electrical equipment, appliances, and components (-1.0%), and primary metals (-0.5%).
- Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, rose 1.4% in April, rebounding from a 0.6% drop the month before.
Source: US Census Bureau
From The TradersCommunity NewsDesk