–Ex Defense +1.2%; Civ Aircraft Orders +7.2% Tho Boeing Orders Plunge
By Joseph Plocek
WASHINGTON (MNI) – The April durable goods data were slightly worse
than expected, though some of the dip could reflect quirks in seasonal
adjustment at the start of Q2.
April durables orders printed +0.2%. Orders also printed -0.6%
excluding transportation and +1.2% ex defense, in a continued seesaw.
Overall orders were -3.7% in March.
Orders are now up in two of the last three months but underlying
orders appear weak.
Boeing Corp. reported four new orders for civilian aircraft after
53 in March. But civilian aircraft orders were +7.2% in the report on
the back of a favorable seasonal adjustment factor.
Motor vehicles printed +5.6% in their best gain since July 2011,
also a result of the seasonal factor, and an oddity give slightly weaker
new unit sales. So overall transportation orders posted +2.1%.
Other sectors were mixed at best: primary metals were +1.7%,
machinery -2.8%, computers -0.6%, and electronics -0.1%. The last three
broad areas suggest that factories overall are not seeing demand.
Nondefense capital goods shipments fell 0.5% in a weak start to Q2
capital spending. Some analysts say April, as the first month of a new
period, reflects inaccurate adjustments and orders and shipments could
jump later in the quarter.
Nondefense capital goods orders excluding aircraft was -0.2%,
marking its third drop.
Overall shipments were up 0.7% and inventories up 0.3%. This
suggests a rise in inventories in GDP. Machinery inventories printed
+1.7% in the largest gain, and are now up in 25 of the last 26 months to
a new high, suggesting businesses are adding selectively to equipment.
**MNI Washington Bureau: (202)371-2121**
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