US durable goods orders rise in April

Tuesday 27 May 2014 15.20
US durable goods orders in surprise jump in April
US durable goods orders in surprise jump in April

New orders for US durable goods rose for a third consecutive month in April, official data released today showed, pointing to momentum in the manufacturing sector.

Durable goods orders rose 0.8% in April, the Commerce Department said. The gain was unexpected as analysts on average had forecast they would fall by 1.3%.

The Commerce Department also sharply revised upward the March increase, to 3.6%, in orders for durable goods, products expected to last at least several years, like cars, computers and ships. The previous estimate was 2.6%. 

Excluding transportation, which can be volatile month-over-month, new orders for durable goods in April rose 0.1%.

Transportation equipment led the increase, rising 2.3% in the third monthly gain in a row. In April the gain was entirely due to a 13.1% increase in orders for defence aircraft and parts.

Orders for non-defence aircraft orders fell 4.1% and motor vehicle orders fell 1%.

Compared with a year ago, new durable goods orders increased 4.9% in April. Excluding transportation, they were up 3.3%.