April durable goods drop, as transportation orders plunge

WASHINGTON — The value of U.S. durable goods new orders fell 1.7% in April, a larger drop than the 1.2% decrease expected by analysts in an MNI survey, data released Friday by the Commerce Department showed.

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The main driver of the decline was a 6.1% drop in transportation orders, as expected. New orders excluding transportation orders posted a 0.9% increase, stronger than the 0.6% gain expected, on gains in every category except machinery.

Annual revisions released on May 17 are incorporated into the data.

Nondefense aircraft and parts new orders fell 29.0% in April following large gains in the previous two months, a move that was telegraphed by a drop in Boeing orders. However, defense aircraft and parts rose 7.5% after a 7.8% drop in March.

Motor vehicles orders posted a 1.8% increase, but transportation orders excluding motor vehicles and aircraft fell by 3.8% following a 23.4% decline in the previous month, according to an MNI calculation.

Nondefense capital goods new orders saw a decline of 6.8%, but were up 1.0% excluding a large drop in civilian aircraft orders.

Durable goods shipments fell 0.1% in April due to a decline in aircraft, with nondefense capital goods shipments down 4.6% overall, but up 0.8% excluding civilian aircraft shipments, a similar pattern to new orders.

Durable goods inventories rose 0.3% in the month, while unfilled orders posted a 0.5% increase.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.
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