WASHINGTON (MNI) - The latest U.S. durables goods and unemployment claims data suggest ongoing economic growth.
April durables goods orders posted +3.4%, ex transportation +0.4%, and ex defense +3.7%, stronger than expected. Orders, an erratic indicator, now are up in three of the last four months, as are ex-transportation orders.
The April gain was led by transportation at +8.9%, its best gain since October, as autos posted +2.9% and nondefense aircraft +64.9%. The latter should be discounted as the unadjusted gain was $219 million, but after adjustment this was altered to +$6.6 billion.
Boeing Corp. reported 34 new orders in April, after 53 in March. Other aircraft companies probably did much better. Ex-transportation orders now are in a firmer up-trend.
Strength in orders was seen in computers at +1.9% and electronics at +0.5%. These boosted the total even as primary metals orders were flat and machinery orders down 1.9%.
Shipments posted +0.6%, and inventories -0.2%.
In a separate report, initial unemployment claims fell 10,000 to 268,000 in the May 21 week, with no special factors. The level of claims is slightly lower after being elevated for three weeks.
The states of Michigan, California, and Pennsylvania had large dips this period in preliminary data.
The four-week average for initial claims is 279,000, after a 258,0000 average in April, suggesting a little labor market erosion.
Continuing claims rose 10,000 to 2.163 million in the May 14 week, up a little from 2.129 million in mid-April
