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U.S. durable goods orders surge in March
Jet, computer orders lead to larger-than-expected 6.1 percent rise
Data: MSN Money and IDC Comstock delayed 20 min.
Updated: 8:36 a.m. ET April 26, 2006
WASHINGTON - New orders for U.S.-made durable goods surged a much larger-than-expected 6.1 percent in March on hefty aircraft, computer, and manufacturing orders, a government report showed Wednesday.
It was the largest gain in durable goods orders since May 2005. Economists polled by Reuters had expected a 1.6 percent increase in overall durable goods orders in March.
Even when transportation orders were stripped out, orders for expensive items meant to last three years or more rose 2.8 percent, well ahead of analyst expectations of a 1 percent rise.
In addition, February durable goods orders were revised higher, to a 3.4 percent gain from the previously reported 2.7 percent rise.
The rise in March orders was boosted by a 71.1 percent gain in non-defense aircraft and parts. All transportation orders climbed 14 percent, with motor vehicles and parts orders up 2.8 percent.
All categories of orders rose with the exception of electrical equipment and defense aircraft. Computers and electronics orders gained 7.5 percent, machinery orders climbed 7.5 percent, and manufacturing orders rose 7.9 percent.
Orders for non-defense capital goods excluding aircraft, a proxy for business spending, gained 3 percent in March, twice the 1.5 percent climb expected by analysts.
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