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 Increased 0.8% in April
Posted Under: Data Watch • Durable Goods
Supporting Image for Blog Post

Implications: New orders for durable goods increased for the third straight month in April, coming in much better than the consensus expected. Orders increased 0.8% in April and 1.8% including upward revisions for March. After a terrible winter, new orders for durables have come back with a vengeance, up at a 31.6% annualized rate in the past three months. Once again the transportation sector led the way, but the gains were outside the auto and aircraft sectors. Orders excluding transportation increased 0.1% in April and are up at a 16.3% annual rate in the past three months. Shipments of "core" capital goods, which exclude defense and aircraft, declined 0.4%, but were up including revisions for March. We think business investment will accelerate over the next couple of years. Consumer purchasing power is growing and debt ratios are low, leaving room for an upswing in appliances. Meanwhile, businesses have record profits and balance sheet cash at the same time that capacity utilization is near long-term norms, leaving more room (and need) for business investment. Signaling future gains, unfilled orders for "core" capital goods rose 0.8% in April, hitting a new record high, and are up 9.7% from a year ago. In other manufacturing news this morning, the Richmond Fed index, a measure of factory sentiment in the mid-Atlantic region, was unchanged at +7 in May. On the housing front, the Case-Shiller index, which measures home prices in 20 key metro areas, increased 1.2% (seasonally-adjusted) in March and is up 12.4% in the past year. Price gains in the past year have been led by Las Vegas, San Francisco, and San Diego. The smallest gain has been in Cleveland. The FHFA price index, for homes financed with conforming mortgages, increased 0.7% in March and is up 6.5% from a year ago. Look for continued home price gains in the year ahead, but not as fast as in the past twelve months.

Click here for PDF version
Posted on Tuesday, May 27, 2014 @ 10:39 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 © 2023 All rights reserved.