US durable goods for April -6.3% versus -7.8% estimate

• Prior month +7.6%
• Durable good orders advanced -6.3% versus -7.8% expected
• Ex transportation 0.2% versus -0.1% estimate. Last month -0.2%
• Ex defnse for April -7.5% versus 9.0% last month
• Non defense capital good ex air -1.3% versus -0.1%. Last month 0.3%

The durable goods orders can be quite volatile impacted by aircraft. If you look at ex transportation, durable goods rub 0.2% versus the -6.3% decline. The nondefense capital Ex Air – a proxy for business investment – is showing weakness which could be an impact of business uncertainty due to things like the tariffs. Course last month he number rose by 0.3%. Nevertheless the markets will be focused on how that part of the report looks going forward.

Details from the Census Department.

• New Orders: Fell by 6.3% to $296.3B after four months of gains;

  • Ex-transportation: Up 0.2%

  • Ex-defense: Down 7.5%

  • Transportation equipment: Dropped 17.1% to $98.8B, driving the headline decline

• Shipments: Rose by 0.4% to $300.6B, the fifth straight monthly gain

  • Transportation equipment shipments: Increased 1.4% to $97.8B, driving the overall rise

Unfilled Orders:

• Rose $0.6B to $1,408.5B (virtually unchanged); up 11 of the last 12 months

• Transportation equipment: +$1.0B (+0.1%) to $850.9B (main driver)

Inventories:

• Increased $0.9B (+0.1%) to $586.7B; 7th consecutive monthly rise

• Transportation equipment: +$0.3B (+0.1%) to $188.5B

Nondefense Capital Goods:

• New orders: Decreased $20.7B (−19.1%) to $87.3B

• Shipments: Increased $3.0B (+3.5%) to $87.4B

• Unfilled orders: Down $0.1B (virtually unchanged) to $815.5B

• Inventories: Decreased $0.3B (−0.1%) to $249.2B

Defense Capital Goods:

• New orders: Increased $3.3B (+30.5%) to $14.1B

• Shipments: Up $0.1B (+1.0%) to $13.9B

• Unfilled orders: Rose $0.3B (+0.1%) to $198.9B

• Inventories: Increased $0.3B (+1.0%) to $26.6B

This article was written by Greg Michalowski at www.forexlive.com.