–Ex Defense +2.3%; Civ Aircraft Orders Just +0.9% Despite Boeing Jump
By Joseph Plocek
WASHINGTON (MNI) – The March durable goods data show strength in
contrast to the initial pause reported for February. This suggests
overall manufacturing continues to grow at a good clip.
March durable goods orders printed +2.5% for their third gain in a
row (February was revised to +0.7%). Ex-transportation orders were up
1.3% and now are up in four of the last five months, and ex-defense
orders printed +2.3% for a strong showing. The last are now up for three
months in a row.
Boeing Corp. reported 98 new orders for commercial aircraft in
March after 21 in February and 34 in January. But nondefense aircraft
orders were reported just +0.9%. Defense aircraft orders posted +6.3%.
Transportation orders advanced 5.9% as autos printed +3.7% in
their best gain since last July.
Elsewhere there was broad strength except in computers and
electronics at -1.1%. The weakness in that category was centered in
communications equipment at -3.4%; computers alone printed +10.4%.
Fabricated metals also printed -2.3% after +2.6% in February.
Primary metals orders advanced 3.9%, Machinery was +4.2% and
Electronics +3.1%. Primary metals appear to be on an uptrend since the
fall, often a sign that manufacturing will continue to grow.
Overall shipments posted +1.8%, and inventories +1.3%, completing
the strong picture.
Nondefense capital goods shipments rose 2.1% to finally surpass
their December level. Still, these shipments dropped about 2% in Q1, not
a good sign for capital spending in the GDP accounts.
Overall, though, the report shows on-going strength in
manufacturing.
**Market News International Washington Bureau: (202)371-2121**
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