Tag Archives: durable goods orders

Good Economic News

Posted on by

On Wednesday, Breitbart posted an article reporting some economic news that looks good for the direction of the American economy.

The article reports:

Orders for durable goods rose far above expectations in February, climbing 0.9 percent to $289.3 billion, according to the Commerce Department’s report released Wednesday.

Economists had forecast a 1.0 percent decline, but instead, businesses continued to invest heavily in big-ticket items, particularly automobiles, computers, and machinery.

Even excluding transportation, which can be volatile due to large aircraft orders, new orders increased by 0.7 percent, exceeding the forecast of a 0.3 percent gain. The strength of the overall durable goods orders report is further demonstrated by robust gains in key categories.

Auto orders were notably strong, with orders for motor vehicles and parts rising 4.0 percent. Shipments of motor vehicles and parts also surged by 3.9 percent, indicating strong demand from consumers and businesses alike.

The decline of 0.3 percent in core capital goods orders—non-defense capital goods excluding aircraft—appears to be a pullback following the strong 0.9 percent gain in January. This decline also undermines claims that businesses are rushing to buy equipment ahead of potential tariffs. Even with February’s decline, core capital goods orders are still up by 7.3 percent year-to-date, indicating that business investment remains robust.

The article concludes:

The durable goods report is the latest piece of so-called “hard data” that indicate actual economic activity continues to expand despite “soft data”—such as consumer and business surveys—indicating anxiety over policy uncertainty and tariffs. Earlier this week, the Commerce Department reported new home sales rose solidly and inventories of new houses for sale increased. Last week, the Federal Reserve said industrial output climbed 0.7 percent in February, including a 0.9 percent rise in manufacturing output.

We have a businessman in the White House–not a professional politician. It makes a difference.

 

Something To Watch

Posted on by

NewsMax is reporting the following today:

U.S. orders for big-ticket manufactured goods dropped unexpectedly in April for the first time in 11 months as a shortage of computer chips disrupted auto production.

The Commerce Department reported Thursday that orders for factory goods meant to last at least three years fell 1.3% in April after rising 1.3% in March. Transportation orders skidded 6.7%. Excluding transportation, which can swing sharply from month to month, durable goods orders were up 1% in April.

Factories have been hamstrung by a shortage of supplies as the U.S. economy reopens from the COVID-19 pandemic and demand for goods and services rebounds rapidly. Orders for auto parts, disrupted by a shortage of computer chips, dropped 6.2% in April. Orders for military capital goods dropped 25.8% after falling 11.7% in March.

Economists had expected durable goods orders to rise about 0.7% last month. Despite the unexpected decline, the April report also contained hopeful signs: A category that tracks business investment — orders for nondefense capital goods excluding aircraft — increased 2.3% last month on top of a 1.6% gain in March.

Recently my husband and I were told by a car salesman that the number of cars his dealership would be receiving in June was significantly reduced from their monthly average. In an average month, they would receive about 100 cars to sell. In June they were expecting 30 because of the shortage of computer chips. This shortage could negatively impact the economic recovery expected by most experts.