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U.S. Durable Goods Orders (Apr) Actual 1.9%, Expected -0.1%, Previous -2.1% (Revised from 0.8%)
Core Durable Goods Orders (Apr) Actual 0.8%, Expected -0.4%, Previous -2.7% (Revised from -0.6%)
Release Explanation: The value of new purchase orders placed with manufacturers that have a life span of more than three years. These can include; aircraft, household appliances, computers and automobiles. Builds an economic picture of how busy the manufacturing industry will be over the coming months and is considered a leading indicator. “It affects Retail Sales, CPI and GDP. A currency will be affected eventually by the consequences of these numbers but not always straight away,” TheLFB-Forex.com Trade Team said.
TheLFB-Forex.com Trade Desk Thoughts: Orders for Durable Goods, those designed to last three years or longer, increased by $1.3 billion or 1.9% in April to $161.5 billion seasonally adjusted. Aprils’ increase follows the decline seen over the last few months, when orders for durable goods contracted.
Non-defense orders continued to decrease in April, falling by $1.0 billion, or 2.0%, while Defense orders increased by $2 billion, or 23.2%.
Inventories of manufactured durable goods were down for the fourth consecutive month in April, contracting 0.8%. Unfilled orders contracted in April for the seventh month in a row, the most on record, reaching $748.9 billion. Shipments of manufactured durable goods contracted 0.2% in April, moving down for the ninth consecutive months.
“Even though the headline number was much better than expected, the release does not point to a strong rebound in durable goods orders. The March numbers saw a huge downward revision, and taken individually, every sub-index continued to contract in April,” TheLFB-Forex.com Trade Team said.
Forex Technical Reaction: S&P futures rose almost 3 points during the news release, re-testing the session’s high. In the currency market, the euro bounced off from the 1.3900 area, just ahead of the Durable Goods Orders’ numbers.
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