The U.S. Census Bureau has released the latest durable goods orders reading, showing a 6.3% month-over-month (MoM) drop in April after four consecutive months of increases. At the same time, the figure still beat the expectation for a 7.8% decline. Durable goods are defined as items made to last at least three years, such as vehicles, planes, and computers.
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Durable Goods Orders Impacted by Low Aircraft Demand
Excluding transportation, durable goods actually rose by 0.2% MoM compared to the estimate for orders to stay steady at 0.0%. Much of this was attributed to non-defense aircraft and parts, with April new orders totaling 18,122 compared to 37,354 in March.
April was the month that President Trump enacted reciprocal tariffs, with companies that ran a front-loading tariff strategy potentially pulling back as the policies were put in place.
Investors don’t seem to be too concerned, as the S&P 500 (SPX) is up by 1% on the day.
