–Ex-Defense Orders +1.6%, Ex-Transport Orders +0.9%; Civ Aircraft +33%
By Joseph Plocek
WASHINGTON (MNI) – U.S. February durable goods orders printed
+0.5% in their third gain in a row, but this was slightly less than
anticipated and suggests a slower take-off in the economy than some
expected.
Ex transportation orders printed +0.9%, reversing a -0.6% in
January, and ex defense printed +1.6% in a sixth gain. These are
consistent with economic recovery.
Boeing Corp. reported 47 new orders after ten in January, and
nondefense aircraft orders were up 32.7%.
Despite the month’s broad order gains, there was weakness in
computers and electronic products at -0.6%, electrical equipment at
-3.3%, autos at -1.9%, and defense capital goods at -4.5%.
The gains were centered in metals, machinery, and nondefense
capital goods. Machinery was up 4.7% and this reflects the third gain in
four months in that category.
Shipments were down 0.6% in a second drop, and inventories up 0.3%
in a second gain. Primary metals’ inventories were up 1.6% in a fourth
gain. This could reflect optimism that growth will advance, or it could
be stockpiling as commodities prices surge. Rising inventories and
falling shipments are a worrisome sign of slower growth.
Nondefense capital goods shipments advanced 0.3%, after printing
-4.4% in January, still suggesting lower business spending in Q1. So the
bottom line is the data are a mixed bag that imply a modest gain in the
economy as problems continue to be worked through some sectors.
Unfilled orders rose 0.4% in a second gain, with transportation
having the largest increase. The latter probably reflects backlogs at
Boeing.
January orders, shipments, and unfilled orders were all revised
higher. This is a sign that recession has ended.
**Market News International Washington Bureau: (202)371-2121**
[TOPICS: MAUDS$,MFU$$$,MGU$$$,MAUDR$]
