US Durable Goods Orders Rise More than Expected in March

New orders for US manufactured durable goods rose 2.6 percent month-over-month in March 2018, following an upwardly revised 3.5 percent surge in February and easily beating market expectations of a 0.5 percent gain. This increase was mainly driven by higher demand for transportation equipment. However, orders for non-defense capital goods excluding aircraft, a proxy for business spending plans, edged down 0.1 percent, the third decline in four months.
US Census Bureau | Joana Ferreira | joana.ferreira@tradingeconomics.com 4/26/2018 1:11:28 PM
New orders for manufactured durable goods increased $6.4 billion to $254.9 billion. Excluding transportation, new orders were virtually unchanged. Excluding defense, new orders increased 2.8 percent. Transportation equipment, also up four of the last five months, drove the increase, $6.4 billion or 7.6 percent to $91.4 billion.

Shipments of manufactured durable goods in March, up ten of the last eleven months, increased $0.7 billion or 0.3 percent to $250.0 billion. This followed a 0.7 percent February increase. Transportation equipment, up four of the last five months, drove the increase, $1.5 billion or 1.8 percent to $83.4 billion.

Unfilled orders for manufactured durable goods in March, up six of the last seven months, increased $9.3 billion or 0.8 percent to $1,154.0 billion. This followed a 0.3 percent February increase. Transportation equipment, up three of the last four months, led the increase, $8.0 billion or 1.0 percent to $782.8 billion.

Inventories of manufactured durable goods in March, up twenty of the last twenty-one months, increased $0.3 billion or 0.1 percent to $411.0 billion. This followed a 0.4 percent February increase. Both Fabricated metal products and Machinery led the increase. Fabricated metal products, up fifteen consecutive months, increased $0.3 billion or 0.6 percent to $52.0 billion. Machinery, up four of the last five months, increased $0.3 billion or 0.4 percent to $70.8 billion.

Nondefense new orders for capital goods in March increased $4.7 billion or 6.0 percent to $83.1 billion. Shipments increased $1.7 billion or 2.2 percent to $76.9 billion. Unfilled orders increased $6.3 billion or 0.9 percent to $716.1 billion. Inventories decreased $0.5 billion or 0.3 percent to $182.5 billion. Defense new orders for capital goods in March increased $0.1 billion or 0.9 percent to $10.6 billion. Shipments decreased $0.3 billion or 2.7 percent to $10.6 billion. Unfilled orders increased less than $0.1 billion or virtually unchanged to $140.7 billion. Inventories also increased less than $0.1 billion or 0.2 percent to $23.3 billion.

US Durable Goods Orders Rise More than Expected in March