March U.S. durable goods orders fell 0.8% in broad weakness that reversed the tentative signs of stabilization in last month’s report.
March’s minus-0.8% reading trimmed the 2.1% gain in February and marks a seventh drop of the last eight months, illustrating weakness.
Orders were down 0.6% excluding transportation and also off 0.6% excluding military orders. March orders were down in all areas except electrical at plus-1.8% and nonmilitary capital goods with a 1.9% increase.
Boeing Corp. reported six new orders after four in February, but there were also large cancellations. Nonetheless, nonmilitary aircraft posted a 4.4% increase. Also in transportation, autos and parts fell 1.7% as new-unit sales remained soft.
Overall shipments posted a 1.7% decline and inventories dropped 1.1% to round out the shrinking sector.
Nonmilitary capital goods shipments were down 0.9% and are lower for the first quarter, confirming cuts in business investment that will subtract from GDP.
In other areas, primary metals was 3.2% lower, machinery slid 0.1%, computers dipped 0.1%, and communications slumped 8.1%. Most orders remains very weak, consistent with further production cuts.
— Market News International
