Durable Goods Orders are Stronger Than Expected

by Marilou Long on May 27, 2014

in Economic Indicators,Employment

Durable goods orders for April came in much stronger than expected at +0.8% versus an estimate of -0.7%.    Defense orders were the strongest component at +39.3%.  From the linked WSJ article:

Durable-goods orders can signal future manufacturing activity as factories ramp up production to meet demand or pull back when orders fall. They jumped 3.6% in March, revised up from an earlier estimate of 2.9%, after rising 2.6% in February. Orders had fallen in January as unusually severe winter weather across much of the nation brought the economy to a near-standstill.

Most economists predict the U.S. economy will bounce back this spring after a weak first quarter. “With the harsh winter behind us, many recent indicators suggest that a rebound in spending and production is already under way, putting the overall economy on track for solid growth in the current quarter,” Federal Reserve Chairwoman Janet Yellen told lawmakers earlier this month.

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