U.S. durable goods orders increase much less than expected in March

The U.S. Commerce Department reported on Monday that the durable goods orders rose 0.5 percent m-o-m in March, following a revised 0.9 percent m-o-m drop in February (originally a 1.1 percent m-o-m decrease).

Economists had forecast a 2.5 percent m-o-m gain.

According to the report, the March gain was driven by a 3.6 percent m-o-m surge in orders for fabricated metal products, which, however, was offset by a 1.7 percent m-o-m decline in orders for transportation equipment. Meanwhile, orders for durable goods excluding transportation jumped 1.6 percent m-o-m in March, following a revised 0.3 percent m-o-m fall in February (originally a 0.9 percent m-o-m decline), matching economists’ forecast of 1.6 percent m-o-m advance.

Elsewhere, orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, increased 0.9 percent m-o-m in March after a revised 0.9 percent decline m-o-m in February (originally a 0.8 percent m-o-m drop). Economists had called for a 1.8 percent m-o-m advance in core capital goods orders in March.

Shipments of these core capital goods climbed 1.3 percent m-o-m in March after a revised 1.1 percent m-o-m drop in the prior month.