Durable Goods Orders Slump In Feb - Weakest Annual Growth In 16 Months

After a modest rebound from October's collapse, Durable Goods Orders were expected to slide lower once again in February but the drop (down 1.6% MoM) was slightly better than expected (down 1.8% MoM).

Additionally, January's data was revised lower (from +0.3% to +0.1%).

 

On a year-over-year basis, durable goods headline data rose at only 1.844% - the weakest since Oct 2017.

Capital Spending proxy (Cap Goods Non-Defense, Ex-Air) slipped 0.1% (worse than expected) for the third time in four months, suggesting corporate investment remains subdued amid a slowing global economy and uncertainty over the trade war with China.

Critically, non-defense aircraft and new parts orders plunged 31.1% MoM - and this is before Boeing's impact.

Categories posting gains in orders included electrical equipment, primary metals and fabricated metal products.

Sectors with declines included motor vehicles and parts, computers and electronic products and machinery.