Durable Goods Orders Rise Less Than Estimates

- Durable Goods Orders for February rose 2.5% versus estimates of a 3.5% gain and a -9.3% decline in January.
- Durables Ex Transportation for February fell -.1% versus estimates of a 1.8% increase and a -4.0% decline in January.

BOTTOM LINE: Orders for durable goods rose less than forecast in February, limited by lower demand for metals, machinery and appliances, Bloomberg reported. Orders for non-defense capital goods excluding aircraft, a gauge of future business investment, fell 1.2% versus a 3.3% decline the prior month. Aircraft orders soared 88% after dropping 60% the prior month. Orders for computers and related products rose 4.8% versus a 3.4% decline the prior month. Motor vehicle and parts bookings gained 1.3% versus a 9.2% decline in January. Other manufacturing reports this month showed factory production may be starting to rebound. Manufacturing gained the most in five months in February, according to the most recent ISM Manufacturing report. I continue to believe manufacturing activity will rebound next quarter and add to economic growth after subtracting from growth this quarter.