–Ex Defense +0.4%; Civ Aircraft Orders +26.7% After +5564% in Jan
By Joseph Plocek
WASHINGTON (MNI) – The weaker-than-expected February durable goods
data suggest the manufacturing sector may struggle ahead.
February durable goods orders printed -0.9% after +3.6% in January,
but are now down in four of the last five months. Ex-transportation
orders were off 0.6% in their second drop, but ex-defense orders
printed +0.4%. The expectation was that overall orders would rise about
1.5%.
Boeing Corp. reported 21 new civilian aircraft orders in February
against 34 in January and 55 in December. But nondefense aircraft
orders in the Commerce Department count were up 26.7% in February and
up 5,564% in January in a contrasting move. That suggests other firms
currently are dominating the market, or that the Boeing metric no
longer represents the industry.
Transportation orders fell 1.9% overall as defense aircraft orders
fell 18.4%. Federal budget austerities probably mean this spending will
continue to moderate ahead.
The main strength in February orders was in electrical equipment at
+2.6% in a rebound after two months of dips. Motor vehicles and parts
printed +1.9% on strong unit sales for new autos.
Orders for primary metals fell 2.1%, machinery fell 4.2%, and
communications equipment outside of computers fell 2.3%.
So overall this was a weak report that signals a slowing in
manufacturing.
Overall shipments printed +0.3%, and inventories +0.9% to complete
the modest picture. Nondefense capital goods shipments were up 1.1%, not
enough to offset the January drop of -3.1%. This suggests business
investment spending slowed in Q1.
**Market News International Washington Bureau: (202)371-2121**
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