Core U.S. Capital Goods Orders Post Unexpected April Gain

New orders for key U.S.-manufactured capital goods unexpectedly increased in April, according to data released by the U.S. Census Bureau on May 26.

Orders for non-defense capital goods excluding aircraft, also known as “core” capital goods, rose 1.4% in April. Data for March was revised to show that core capital goods declined 0.6%, up from the previously reported decrease of 1.1%. Orders for core capital goods increased 2.7% year-over-year in April.

Economists polled by Reuters had forecast orders for core capital goods would fall 0.2% in April.

Orders for electrical equipment, appliances and components dropped 1% while orders for computers and electronic products fell 1.4%. Orders for machinery increased 1%.

New orders for manufactured durable goods — items that are meant to last three years or more — grew 1.1% in April, following a 3.3% increase in March. A 3.7% surge in transportation equipment drove growth in April. Excluding transportation, new orders decreased 0.2%, and excluding defense, new orders fell 0.6%.