US Durable Goods: Not as bad as the headline suggests – Wells Fargo

Data released on Friday showed Durable Goods Orders tumbled 14% in March, more than expected. According to analysts at Wells Fargo, the only larger monthly decline was in the summer of 2014 when Boeing reported a huge surge in their (then) new 787 Dreamliner, the drop from that high pulled the headline down sharply the following month.

Key Quotes: 

“Although the durable goods spending picture is ugly, aircraft was a factor again here in March as net cancellations at Boeing resulted in about -282 net orders. Civilian aircraft fell 296%.

“Non-defense capital goods orders excluding the volatile aircraft component were actually up a scant 0.1%. Though the trend here is clearly a weakening one, the fact that this measure remained positive during the month in which most of the country closed up shop is remarkable.”

“Core capital goods shipments were off 0.2%, but remain slightly positive on a 3-month annualized basis, this is apt to turn lower.”