–Ex-Defense Orders -1.2%, Ex-Transport Orders +2.8% (Autos +2.5%)
By Joseph Plocek
WASHINGTON (MNI) – U.S. March durable goods orders were
surprisingly weak at -1.3%, breaking a string of three gains, but the
softness stemmed from a 67% fall in civilian aircraft orders.
Other orders held up far better. Ex transportation orders printed
+2.8% and are up in four of the last five months. Ex-defense
orders printed -1.2%, but this also included the aircraft decline.
Boeing Corp. reported 43 new orders in March, after 47 in February
and 10 in January, so the 67.1% decline in civilian aircraft orders is
something of a puzzle. It could reflect lower parts orders or declines
in aircraft buying at smaller manufacturers. This pushed transportation
orders to -12.9%.
Transportation orders are now down two months in a row after -0.4%
in February. However, the prior weakness was in autos, which has
rebounded as new vehicle unit sales have risen.
Most areas had good gains: primary metals posted +3.5%, machinery
+8.6%, computers/electronics +3.4%, and motor vehicles +2.5%.
Nondefense capital goods shipments advanced 2.4% but are soft in
Q1, suggesting little boost to GDP.
Shipments overall printed +1.2% and inventories +0.2%, also
suggesting recovery. So the bottom line is March was probably just a
pause in orders during an overall recovery. February orders and
shipments levels were revised slightly higher in another sign of
recovery.
**Market News International Washington Bureau: (202)371-2121**
[TOPICS: MAUDS$,MFU$$$,MGU$$$,MAUDR$]