Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 

Blog Home
   Brian Wesbury
Chief Economist
 
Click for Bio
Follow Brian on Twitter Follow Brian on LinkedIn View Videos on YouTube
   Bob Stein
Deputy Chief Economist
Click for Bio
Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 
  New orders for durable goods declined 1.3% in March

 

Implications:  Today's report on durable goods was rip-roaring positive on business investment and confirms the V-shaped recovery.  Although overall orders fell 1.3%, all of the decline was due to a huge drop in orders for civilian aircraft, which is the most volatile part of the report and very likely to be temporary.  Excluding the transportation sector, orders increased 2.8%, the largest gain since 2007.  Ex-transportation orders are up at a 15% annual rate in the past six months.  Orders for industrial machinery are particularly strong, up 8.6% in March and up 22.3% in the past year, the strongest 12-month gain since the early 1980s.  Meanwhile, shipments of "core" capital goods (which exclude defense and aircraft) increased 2.2% in March (3% including upward revisions to February).  Moreover, orders for core capital goods are once again running ahead of shipments, suggesting further strength ahead.  Cash-rich companies (who are earning essentially zero percent interest on their money) are deciding to invest their cash.  This is consistent with an acceleration in private-sector payroll gains over the next few months.

Click here to view the full report.

Posted on Friday, April 23, 2010 @ 11:45 AM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2022 All rights reserved.