Durable Goods Orders Rise for Third Month

James Hyerczyk
Updated: May 24, 2024, 14:25 GMT+00:00

Key Points:

  • Durable goods orders increase by $1.9 billion or 0.7% in April, marking the third consecutive month of growth.
  • Transportation equipment orders rise for the third straight month, increasing by $1.1 billion or 1.2% to $96.2 billion.
  • Excluding defense, durable goods orders show no significant change, highlighting the impact of defense-related orders on total figures.
US Durable goods

Durable Goods Orders Rise for Third Consecutive Month

The U.S. Census Bureau reported an increase in new orders for manufactured durable goods in April, marking the third consecutive month of growth. This trend reflects ongoing recovery and robust demand in the manufacturing sector.

New Orders for Durable Goods Increase

In April, new orders for durable goods increased by $1.9 billion, or 0.7%, reaching a total of $284.1 billion. This follows a 0.8% increase in March, suggesting a steady rise in demand for durable goods. This consistent growth underscores the resilience of the manufacturing sector.

Transportation Equipment Leads Growth

Transportation equipment orders rose by $1.1 billion, or 1.2%, to $96.2 billion in April. This sector has now seen growth for three consecutive months, highlighting its crucial role in driving the overall increase in durable goods orders. The sustained demand for transportation equipment signals strong investment in this category.

Excluding Transportation and Defense

Excluding transportation, new orders for durable goods increased by 0.4%. This indicates that while transportation equipment is a significant contributor, other sectors are also experiencing growth. However, excluding defense, new orders were virtually unchanged, emphasizing the specific impact of defense-related orders on the total figures.

Market Forecast

The continued rise in durable goods orders, particularly in the transportation sector, points to a bullish outlook for the manufacturing sector in the short term. The steady growth across various categories suggests strong underlying demand, which is likely to support further gains. Traders can expect positive momentum in the durable goods market, driven by sustained consumer and industrial investment.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

Did you find this article useful?