Durable Goods Orders in the US Exceeded Expectations Sharply in April, Marking Two Consecutive Months of Growth

The U.S. Commerce Department announced data on Thursday, with durable goods orders increasing by 7.9% month-on-month in April, far exceeding market expectations and marking the second consecutive month of growth. The March data was also revised up to 1.3%.

Transportation equipment was the biggest contributor, with new orders increasing by 21.5% month-on-month to $130.9 billion. Excluding transportation, orders increased by 1.1% month-on-month, also exceeding expectations. Excluding defense, orders grew by 8.1% month-on-month, compared to a decline of 0.3% in March.

However, "non-defense capital goods orders excluding aircraft," seen as a leading indicator of corporate capital expenditures, fell by 1.1% month-on-month, undershooting expectations of a 0.4% increase, with the previous figure being a 3.9% increase, indicating a cooling of core investment intentions among businesses, which is worth paying attention to.