U.S. Advance durable orders rebounded 2.7% in March
U.S. Advance durable orders rebounded 2.7% in March, much stronger than expected, following the 1.1% February drop (revised from -1.6%). The guts of the data look pretty solid too, though durables are notoriously noisy. Transportation orders increased 7.0% last month after February's 2.9% drop (revised from -4.8%). Excluding transportation, orders were up 0.4% from the prior 0.2% dip (revised from +0.1%). The important non-defense capital goods orders excluding aircraft rose 1.3% (biggest gain since July) after edging up 0.1% previously (revised from -0.1%). Shipments increased 0.3% versus 0.3% previously (revised from 0.2%). Non-defense capital goods shipments excluding aircraft fell 0.2%, though February was revised up to 0.2% (from unchanged). Inventories were up 0.3% from 0.4% (revised from 0.3%). The inventory-shipment ratio was steady at 1.62. This is another solid report that adds to better outlook on the economy versus the doom/gloom from the turn of the year.