FX.co ★ U.S. Durable Goods Orders Surge 2.6% In March, More Than Expected

The U.S. Commerce Department reported on Wednesday that in March, new orders for domestic manufactured durable goods surged significantly, largely due to a substantial increase in transportation equipment orders. This marked an increase more considerable than analysts had anticipated.

According to the report, in March, durable goods orders jumped by 2.6%, following a revised growth of 0.7% from the previous month - February. Economists had predicted a spike of 2.3% in contrast to the reported increase of 1.3% in orders from the previous month.

The unexpected surge in durable goods orders was primarily due to a 7.7% increase in transportation equipment orders. Non-defense aircraft and related parts orders recorded the most significant growth of an astounding 30.6%.

Even with the exclusion of the transportation equipment sector, durable goods orders marked a slight growth of 0.2% in March, following a 0.1% growth in February. Analysts predicted a rise of 0.3% with transportation orders excluded.

Other sectors saw a similar increase. Orders for computers and electronic products, for example, rose by 0.8%, and fabricated metal product orders saw an increase of 0.2%. Both electrical equipment – including appliances and components - and machinery orders also saw a modest rise of 0.1%. However, primary metals orders fell by 0.5%.

The Commerce Department also reported that non-defense capital goods orders, excluding aircraft, a critical business spending indicator, rose by 0.2% in March, the last increase was 0.4% in February. Furthermore, shipments in the same category, which influence equipment investment data in GDP, saw a slight rise of 0.2% in March, following a drop of 0.6% in February.