Durable Goods 2.5%, In Line With Expectations Of 2.3%, Ex-Transportation 1.3% Below Consensus Of 1.9%

Tyler Durden's picture

March Durable Goods came at 2.5% in line with expectations fo 2.3%, with the previous number revised far higher from -0.9% to 0.7%. However, durable goods ex the volatile (and oh so snow dependent) transportation segment was 1.3% on expectations of 1.9% (with the previous plunge here of -0.6% remaining unchanged). While this month's ex-number was weak, the prior month's revision likely means the trendline was smoothed down, although both February and march were still modestly weaker, confirming that while Q1 GDP will be low, the pain will continue to be felt in Q2.

From the report:

New Orders.  New orders for manufactured durable goods in March increased $5.0 billion or 2.5 percent to $208.4 billion, the U.S. Census Bureau announced today.  This increase, up three consecutive months, followed a 0.7 percent February increase.  Excluding transportation, new orders increased 1.3 percent.  Excluding defense, new orders increased 2.3 percent. Transportation equipment, also up three consecutive months, had the largest increase, $3.1 billion or 5.9 percent to $54.7 billion.

Shipments.  Shipments of manufactured durable goods in March, up five consecutive months, increased $3.7 billion or 1.8 percent to $207.3 billion. This followed a 0.5 percent February increase.  Transportation equipment, up four consecutive months, had the largest increase, $1.6 billion or 3.3 percent to $51.1 billion.

Inventories.     Inventories of manufactured durable goods in March, up fifteen consecutive months, increased $4.2 billion or 1.3 percent to $333.9 billion.  This followed a 1.3 percent February increase.  Transportation equipment, also up fifteen consecutive months, had the largest increase, $1.7 billion or 1.9 percent to $89.8 billion. 

Capital Goods.  Nondefense new orders for capital goods in March increased $2.3 billion or 3.2 percent to $73.3 billion.  Shipments increased $1.4 billion or 2.1 percent to $67.2 billion.  Unfilled orders increased $6.1 billion or 1.2 percent to $513.6 billion.  Inventories increased $2.4 billion or 1.7 percent to $142.8 billion.  Defense new orders for capital goods in March increased $0.6 billion or 7.6 percent to $9.0 billion.  Shipments increased $0.4 billion or 4.8 percent to $8.9 billion.  Unfilled orders increased $0.1 billion or 0.1 percent to $141.6 billion.  Inventories increased $0.7 billion or 3.7 percent to $18.3 billion.