Durable Goods Orders Crash Below Expectations

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Durable goods orders came in at -1.3%, far below the Reuters-based consensus estimate of a 0.3% rise.

But the good news was a +1.1% revision of February data.

Read the government report here >

New orders for manufactured durable goods in March decreased $2.2 billion or 1.3 per cent to $176.7 billion, the U.S. Census Bureau announced today. This decrease followed three consecutive monthly increases, including a 1.1 per cent February increase. Excluding transportation, new orders increased 2.8 per cent. Excluding defence, new orders decreased 1.2 per cent.

Transportation equipment, down two consecutive months, had the largest decrease, $5.9 billion or 12.9 per cent to $40.2 billion. This was due to nondefense aircraft and parts which decreased $6.5 billion.

Shipments

Shipments of manufactured durable goods in March, up following two consecutive monthly decreases, increased $2.2 billion or 1.2 per cent to $182.2 billion. This followed a 0.5 per cent February decrease.

Machinery, up two consecutive months, had the largest increase, $1.0 billion or 4.3 per cent to $24.0 billion.

Unfilled Orders

Unfilled orders for manufactured durable goods in March, down following two consecutive monthly increases, decreased $2.3 billion or 0.3 per cent to $719.8 billion. This followed a 0.4 per cent February increase.

Transportation equipment, also down following two consecutive monthly increases, had the largest decrease, $4.6 billion or 1.1 per cent to $408.6 billion.

Inventories

Inventories of manufactured durable goods in March, up three consecutive months, increased $0.5 billion or 0.2 per cent to $304.7 billion. This followed a 0.5 per cent February increase. Primary metals, up five consecutive months, had the largest increase, $0.5 billion or 1.8 per cent to $27.1 billion.

Capital Goods

Nondefense new orders for capital goods in March decreased $4.6 billion or 7.5 per cent to $56.1 billion. Shipments increased $1.4 billion or 2.4 per cent to $59.0 billion. Unfilled orders decreased $2.9 billion or 0.7 per cent to $409.1 billion. Inventories decreased $0.5 billion or 0.4 per cent to $132.1 billion.

defence new orders for capital goods in March decreased $0.4 billion or 4.0 per cent to $10.0 billion. Shipments increased $0.1 billion or 0.7 per cent to $10.9 billion. Unfilled orders decreased $0.9 billion or 0.6 per cent to $131.3 billion. Inventories decreased $0.1 billion or 0.6 per cent to $20.6 billion.

Revised February Data

Revised seasonally adjusted February figures for all manufacturing industries were: new orders, $384.3 billion (revised from $383.5 billion); shipments, $385.4 billion (revised from $384.9 billion); unfilled orders, $722.0 billion (revised from $722.2 billion); and total inventories, $499.7 billion (revised from $498.3 billion).

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