Durable Goods Orders m/m fell more than expected this morning.

-3.6% actual vs. -2% forecast vs. 4.4% previous 

Core Durable Goods Orders, excluding transportation, came -1.5% actual vs. .7% forecast vs. 2.5 previous.

Durable goods orders are a leading indicator of manufacturing in the US.  It's the change in the total value of new purchase orders placed with manufacturers for durable goods.  Orders for Aircraft are volatile and can distort the underlying trend.  Therefore, Core Durable goods orders are thought to be a better gauge of purchase orders.

Here is the breakdown of the numbers from the U.S. Department of Commerce:

  • New orders for durable goods in April decreased $7.1 billion or 3.6% to $189.9 billion
  • Transportation equipment, also down two of the last three months, had the largest decrease in new orders, $4.9 billion or 9.5% to $46.7 billion
  • Inventories increased, unfilled orders increased while new orders and shipments decreased
  • Orders for Computers and electronic products rose

Nonetheless, with such negative numbers, the U.S. dollar barely reacted suggesting that investors have grown immune to weaker U.S. data.