Orders for long-lasting goods such as cars, airplanes and computers rose less than expected in March as weak exports and low oil prices continued to hamper business demand and manufacturing output.
Advertisement
Durable-goods orders in February, meanwhile, were revised slightly to show a 3.1% decline. Eli Lilly (LLY), Spirit Airlines (SAVE) and Whirlpool (WHR) reported mixed quarterly results.
Excluding transportation equipment demand, which is often volatile from month to month, bookings for durable goods decreased 0.2 percent in March after dropping 1.3 percent a month earlier, the report showed. Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI) has risen 6.00% since March 27, 2016 and is uptrending. The U.S. central bank is expected to leave its benchmark overnight interest rate unchanged on Wednesday. Orders, which went unfulfilled, decreased by 0.1% to $1,182.5 billion. “Although this month’s flattening in core capital goods orders suggests we may have reached a bottom, the overall tone of the report suggests we are not yet seeing a reacceleration in the sector”, said Jesse Edgerton, an economist at JPMorgan in NY.
Manufacturing, which accounts for 12 percent of the USA economy, is struggling with the lingering effects of the dollar’s past surge and sluggish overseas demand. So-called core orders, a proxy for business investment, were flat last month after a 2.7% drop in February.
Orders for civilian aircraft fell 5.7 percent despite Boeing reporting on its website that it had received orders for 69 aircraft last month, up from just two in February. Orders for motor vehicles and parts dropped 3 percent.
These numbers will factor in the first quarter gross domestic product (GDP) estimate, due Thursday at 8:30 a.m. ET. Orders for computers and electronic products fell as did those for electrical equipment, appliances and components. The consensus estimate calls for a 0.7 percent month-over-month increase in the 20-city composite house price index in February following a 0.8 percent increase in January.
Advertisement
Durable-goods figures can swing widely from month to month and are subject to large revisions.
