Source: Sharecast
April's durable goods reading far outpaced expectations for a 3.5% gain and followed an upwardly revised 1.3% rise in March, driven largely by a 21.5% increase in transportation equipment, including a sharp 165.9% rise in non‑defence aircraft and parts.
Capital goods orders were also strong, up 21%, while orders also increased across several other categories, including fabricated metal products, up 3.5%, and primary metals, up 1.9%. Computer and electronic products, on the other hand, fell 0.7%.
Excluding transportation, durable goods orders rose 1.1%, matching the pace seen in March. Excluding defence, orders climbed 8.1% after a 0.3% decline the previous month.
However, non‑defence capital goods orders excluding aircraft, a closely watched proxy for business investment, fell 1.1%, reversing part of March's 3.9% increase.
Reporting by Iain Gilbert at Sharecast.com