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 Rose 1.7% in February
Posted Under: Data Watch • Durable Goods

 

Implications:  Business investment is getting its mojo back.  New orders for durable goods rose once again in February following a healthy increase in January.  The February rise was due in large part to commercial aircraft orders, but strip out the volatile transportation sector and durable goods orders still rose 0.4%.  Non-transportation orders were led higher in February by primary metals, electrical equipment, appliances & components, and machinery.  These non-transportation orders have been steadily trending higher since mid-2016, and have risen in each of the last six months.  Meanwhile machinery orders rose once again in February and have not shown a monthly decline since April of last year.  This is, in part, a sign of continued improvements in the energy sector, which had been pulling down machinery investment since oil prices started declining in mid-2014.  Shipments of "core" capital goods - non-defense, excluding aircraft – rose 1.0% in February.  If unchanged in March, these shipments will be up at a 6.9% annual rate in Q1 versus the Q4 average.  This series is important for GDP and, despite a modest decline in new orders for "core" capital goods in February, should continue to be a positive contributor to growth in the quarters ahead. Taken as a whole, today's report on durable goods supports the pickup in manufacturing activity seen in other economic reports, and suggests that confidence from both consumers and companies is on the rise. 

Click here for PDF version

Posted on Friday, March 24, 2017 @ 10:12 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 advisors 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.
First Trust Advisors L.P.
Home |  Important Legal Information |  Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2019 All rights reserved.