Economy

Durable Goods Gain Strongly in March, Crushing the Forecast at 2.7%

Manufacture of rails for trains and freight wagon, boxcars. Rail manufacturing plant. Stack of steel round bar – iron metal rail lines material for industry construction in warehouse. (Photo: AdobeStock)

The U.S. Census Bureau reported new orders for manufactured durable goods rose $6.8 billion or 2.7% to $258.5 billion in March, easily beating the consensus. The increase follows a decrease of 1.1% in February.

The consensus forecast was looking for a gain of 0.7%, ranging from a low of -0.5% to a high of 1.9%. Durable goods have been up four of the last five months.

Excluding transportation, new orders increased 0.4%. Excluding defense, new orders increased 2.3%.

	Prior	Revised	Consensus	Range	Actual
New Orders – M/M ∆	-1.6%	-1.1%	0.7%	-0.5% – 1.9%	2.7%
Ex-Transportation – M/M ∆	0.1 %	-0.2 %	0.2 %	0.1 % – 0.6 %	0.4 %
Core Capital Goods – M/M ∆	-0.1 %	0.1 %	0.1 %	0.1 % – 0.4 %	1.3 %

Transportation equipment, also up four of the last five months, led the increase, rising $6.1 billion or 7.0% to $93.8 billion.

Shipments

Shipments of manufactured durable goods increased $0.9 billion, or 0.3% to $259.6 billion in March, and are up four of the last five months. This followed a 0.3% gain in February. Transportation equipment, up following two consecutive monthly decreases, drove the increase, $1.0 billion or 1.1% to $90.7 billion.

Unfilled Orders

Unfilled orders for manufactured durable goods in March, rose $3.2 billion or 0.3% to $1,181.9 billion, and have been up two of the last three months. This followed a 0.2% decline in February.

Transportation equipment, also up two of the last three months, led the increase, rising $3.1 billion or 0.4% to $811.9 billion.

Inventories

Inventories of manufactured durable goods have been up twenty‐six of the last twenty‐seven months, and rose $1.4 billion or 0.3% to $420.5 billion in March. This followed a 0.4 percent February increase.

Machinery, up fifteen of the last sixteen months, led the gain rising $0.7 billion or 1.0% to $71.6 billion.

Capital Goods

Nondefense new orders for capital goods in March increased $4.9 billion or 6.5% to $80.5 billion, with shipments increasing less than $0.1 billion at $79.0 billion.

Unfilled orders rose $1.4 billion or 0.2% to $708.2 billion. Inventories increased $1.3 billion or 0.7% to $184.9 billion. Defense new orders for capital goods in March rose $1.0 billion or 7.4% to $13.9 billion. Shipments increased $0.1 billion or 1.0% to $12.6 billion.

Unfilled orders increased $1.4 billion or 0.9% to $158.1 billion. Inventories increased $0.2 billion or 0.8% to $23.1 billion.

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PPD Business Staff

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.