Durable Goods Orders Jump as Investment Rebounds

Orders for core capital goods, orders excluding aircraft and defense and considered a marker for future business investment, rose 1.3 percent for its biggest increase in eight months.

“A strong increase in core capital goods orders is a positive sign for rising business investment into the second quarter, consistent with our view that 2019 will be another year of solid activity,” said economist Andrew Hollenhorst of Citibank.

The March advance report on manufacturers’ shipments, inventories and orders issued by the U.S. Census Bureau follows:

New Orders

New orders for manufactured durable goods in March increased $6.8 billion or 2.7 percent to $258.5 billion. This increase, up four of the last five months, followed a 1.1 percent February decrease. Excluding transportation, new orders increased 0.4 percent. Excluding defense, new orders increased 2.3 percent. Transportation equipment, also up four of the last five months, led the increase, by $6.1 billion or 7.0 percent to $93.8 billion.

Shipments

Shipments of manufactured durable goods in March, up four of the last five months, increased $0.9 billion or 0.3 percent to $259.6 billion. This followed a 0.3 percent February increase. Transportation equipment, up following two consecutive monthly decreases, drove the increase by $1.0 billion or 1.1 percent to $90.7 billion.

Unfilled Orders

Unfilled orders for manufactured durable goods in March, up two of the last three months, increased $3.2 billion or 0.3 percent to $1,181.9 billion. This followed a 0.2 percent February decrease. Transportation equipment, also up two of the last three months, led the increase by $3.1 billion or 0.4 percent to $811.9 billion.

Inventories

Inventories of manufactured durable goods in March, up 26 of the last 27 months, increased $1.4 billion or 0.3 percent to $420.5 billion. This followed a 0.4 percent February increase. Machinery, up 15 of the last 16 months, led the increase by $0.7 billion or 1.0 percent to $71.6 billion.

Capital Goods

Nondefense new orders for capital goods in March increased $4.9 billion or 6.5 percent to $80.5 billion. Shipments increased less than $0.1 billion to $79.0 billion. Unfilled orders increased $1.4 billion or 0.2 percent to $708.2 billion. Inventories increased $1.3 billion or 0.7 percent to $184.9 billion.

Defense new orders for capital goods in March increased $1.0 billion or 7.4 percent to $13.9 billion. Shipments increased $0.1 billion or 1.0 percent to $12.6 billion. Unfilled orders increased $1.4 billion or 0.9 percent to $158.1 billion. Inventories increased $0.2 billion or 0.8 percent to $23.1 billion.

Revised February Data

Revised seasonally adjusted February figures for all manufacturing industries were: new orders, $498.7 billion (revised from $497.5 billion); shipments, $505.7 billion (revised from $505.5 billion); unfilled orders, $1,178.7 billion (revised from $1,177.6 billion); and total inventories, $688.0 billion (revised from $687.8 billion).