Durable goods fall less than expected in February

Durable goods orders fell 2.8% in February.

A decline in transportation orders led the drop, as signalled in data from Boeing, and following a surge in civilian aircraft that boosted the headline in the prior period.

Orders for January were revised down to 4.2% from 4.7%.

The advance numbers from the Census Bureau showed that orders for goods excluding military orders and planes, fell 1.8%.

Economists had estimated that headline orders fell 3% compared to the prior month, according to Bloomberg.

Core orders were expected at 0.3%.

In a client note after the report, BNP Paribas’ Bricklin Dwyer wrote,

In all, the pace of business investment in Q1 looks on track to disappoint with the q/q saar rate on pace for a 5% contraction — at face value this would subtract about 0.3pp from our previous estimate of GDP of 2.0%, which had a flat print for business investment penciled in.

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