Durable Goods Orders Surprise to the Upside in April

New orders for manufactured durable goods jumped to $284.1 billion in April, marking a 0.7% increase from March, according to the U.S. Census Bureau. This uptick defied economists’ expectations of a 0.7% decline and marks the third straight monthly increase.

Numbers to know:

• $284.1 billion: New orders for manufactured durable goods in April.
• 0.7%: Increase in orders from March.
• 0.7% decline: What economists had expected.
• 0.4%: Rise in orders excluding transportation.

Breaking It Down: Excluding transportation orders rose 0.4%, rebounding from a flat March and matching February’s increase.

• Core capital-goods orders: These, excluding volatile sectors like transportation and defense, rose 0.3% last month, recovering from a 0.1% fall in March.
• Nondefense capital goods: Orders remained flat in April, a significant drop from the 1.2% rise in March and the worst performance since January’s 7.9% decline.

Why This Matters: Durable goods are manufactured products that last at least three years, such as cars, washing machines, and household appliances. When the economy improves, businesses and consumers are more likely to order durable goods.