March Durable Goods Snap Back

Core capital goods shipments, a figure that is used to help calculate equipment investment in the government’s gross domestic product report, rose 0.2% in March – growing for a second straight month.

The broad-based gain in durable goods included stronger bookings for communications equipment, machinery, and electrical equipment. Motor vehicle bookings increased 5% after a 0.3% dip in the prior month. Durable goods orders excluding transportation equipment increased 1.1%.

Bookings for commercial aircraft declined 0.9%, while government data showed unfilled orders for all durable goods rose 0.4%, led by transportation equipment. Inventories climbed 0.7%.

Below is the March advance report from the US Census Bureau on durable goods manufacturers’ shipments, inventories, and orders:

New Orders

New orders for manufactured durable goods in March increased $2.3 billion, or 0.8%, to $275.0 billion. This increase, the fifth in the last six months, followed a 1.7% decrease in February. Computers and electronic products, up two of the last three months, led the increase, up $0.7 billion, or 2.6%, to $26.3 billion.

Shipments

Shipments of manufactured durable goods in March, up ten of the last eleven months, increased $3.3 billion, or 1.2%, to $274.2 billion. This followed a 0.1% February increase. Transportation equipment, up five of the last six months, was up $1.9 billion, or 2.4%, to $80.0 billion.

Unfilled Orders

Unfilled orders for manufactured durable goods in March, up fourteen consecutive months, increased $5.3 billion, or 0.4%, to $1,294.6 billion. This followed a 0.5% February increase. Transportation equipment, up thirteen of the last fourteen months, led the increase, up $3.7 billion, or 0.4%, to $857.6 billion.

Inventories

Inventories of manufactured durable goods in March, up fourteen consecutive months, increased $3.3 billion, or 0.7%, to $482.9 billion. This followed a 0.6% February increase. Transportation equipment, up four of the last five months, led the increase, up $1.5 billion, or 1.0%, to $156.0 billion.

Capital Goods

Nondefense new orders for capital goods in March decreased $0.5 billion, or 0.5%, to $90.0 billion. Shipments decreased $0.1 billion, or 0.1%, to $84.2 billion. Unfilled orders increased $5.9 billion, or 0.7%, to $805.2 billion. Inventories increased $2.1 billion, or 1.0%, to $212.7 billion.

Defense new orders for capital goods in March decreased $0.7 billion, or 5.6%, to $11.3 billion. Shipments decreased $0.2 billion, or 1.9%, to $12.6 billion. Unfilled orders decreased $1.3 billion, or 0.7%, to $183.4 billion. Inventories increased $0.1 billion, or 0.4%, to $21.4 billion.

Revised and Recently Benchmarked February Data

Revised seasonally adjusted February figures for all manufacturing industries were: new orders, $545.4 billion (revised from $542.0 billion); shipments, $543.6 billion (revised from $541.0 billion); unfilled orders, $1,289.3 billion (revised from $1,288.5 billion), and total inventories, $787.0 billion (revised from $785.2 billion).

By David Schollaert, David@SteelMarketUpdate.com