The Durable Goods advance report for April 2010 showed a 2.9% increase for new orders. Just like last month, the report (original on Census.gov), was driven by non-defense commercial aircraft & parts, again, which increased in new orders a whopping 228% from March to April. Minus transportation durable goods new orders actually decreased -1.0%. The below analysis removes the volatile aircraft numbers to get a better feel for what is going on overall.
Below is nondefense new orders minus the volatile aircraft. As you can see on the private sector, without air-o-planes, new orders are down. Minus Uncle Sam (defense) (plus transportation, which includes aircraft), new orders are up, 3.4%.
New orders for manufactured durable goods in April increased $5.6 billion or 2.9 percent to $193.9 billion, the U.S. Census Bureau announced today. This was the fourth increase in the last five months and followed a slight March decrease. Excluding transportation, new orders decreased 1.0 percent. Excluding defense, new orders increased 3.4 percent.
Transportation equipment, up following two consecutive monthly decreases, had the largest increase, $7.0 billion or 16.1 percent to $50.7 billion. This was due to nondefense aircraft and parts which increased $7.3 billion.
Shipments increased 1.4%, unfilled orders increased 0.4%, with computers and electronics shipments jumping 8.1%. Inventories increased 0.7%.
Nondefense new orders for capital goods in April increased 9.2%. Defense capital goods new orders decreased -2.1%. But here's the bad news, minus aircraft, nondefense capital goods new orders decreased -2.4%.
Capital goods is the stuff businesses buy to make more stuff. In the case of Defense, it's stuff to make more war (sorry, but it's a business!)
Nondefense new orders for capital goods in April increased $5.5 billion or 9.2 percent to $66.1 billion. Shipments increased $0.1 billion or 0.2 percent to $62.4 billion. Unfilled orders increased $3.7 billion or 0.8 percent to $483.7 billion. Inventories increased $1.2 billion or 0.9 percent to $125.3 billion.
Defense new orders for capital goods in April decreased $0.2 billion or 2.1 percent to $10.7 billion. Shipments decreased $0.4 billion or 3.8 percent to $10.6 billion. Unfilled orders increased $0.1 billion or 0.1 percent to $139.6 billion. Inventories decreased $0.3 billion or 1.6 percent to $17.9 billion.
Manufacturing with all orders, including unfilled orders increased 3.3%, while machinery new orders down -5.9%. Computers, electronics overall new orders was up 2.2%, computers alone dropped -3%. Communications gear new orders was up 7.1%, yet electronics, appliances and components was drop -6.9%. Transportation, which includes the blow out 228% aircraft & parts percentage increase, overall increased 16.1%.