Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
Daily News

Durable Goods Orders Fell Sharply in April
May 27, 2004
 Printable format
 Email this Article
 Search

Orders for long-lasting durable goods fell much more sharply than expected in April as U.S. factories paused following a stellar March, whose numbers were revised even higher, government data recently showed.

The dollar dipped and U.S. government bonds strengthened after the U.S. Commerce Department said orders for big-ticket items meant to last at least 4 years fell 2.9 percent, the largest decrease since a 6-percent fall in September 2002.

But March's gain was revised up again to 5.7 percent from 5 percent, and February had been strong as well, with a 3.9-percent advance.

"The upward trend in capital spending is very much in place, and we need to think of April as more of a payback for some huge numbers in the previous 2 months than anything that's a start of a new trend," said Joseph Lavorgna, chief fixed income economist at Deutsche Bank Securities.

Wall Street, the center of U.S. financial activity, is wary of the volatile nature of this data series and forecast a 0.2-percent decline as industry took a breather in an otherwise powerful upturn.

This has brightened the outlook for the country's battered manufacturers after they suffered in the 2001 recession and lagged in the economy's recovery.

Prices on the benchmark 10-year Treasury note were up 11/32, and the U.S. dollar nudged weaker against the euro to $1.2123 from $1.2110 shortly before the data.

The drop in orders was fairly broad-based, with non-defense capital goods excluding aircraft—a proxy for business spending—down 3.5 percent, while orders outside the defense sector were 2.4 percent lower.

Orders for machinery fell 4.9 percent while computer and electronics registered a 4.1 percent decline. Defense-related capital goods orders posted a 10.9 percent drop and demand for military aircraft was down 5.8 percent.

"We have seen sizable durable goods strength in the previous 2 months. Presumably this was more of a pullback from the excessive strength rather than an indication of weakness in the factory sector," said Bob Lynch, a currency strategist at BNP Paribas. (Reuters)

Back to Daily News

 

Daily News

...........................................................

Sep 25, 2014: Cub Cadet's new lawn tractor has Bluetooth and its own app

Sep 24, 2014: GE has the highest ranked appliance brand website; h.h. gregg ranked top appliance retailer website

Sep 24, 2014: Haier becomes first refrigerator maker to offer a lifetime compressor warranty

Sep 24, 2014: New condensing dishwasher from Whirlpool's plant in Wroclaw, Poland

Sep 24, 2014: Index points to growth in consumer spending on tech products in remaining months of 2014

More Daily News>>

RSS Feeds
.........................................................
Appliance Industry
Market Research

...........................................................

September 2014: Appliance Industry Focus: HVAC
June 2014: Appliance Magazine Market Insight: April 2014
May 2014: Appliance Magazine Market Insight: March 2014
April 2014: Appliance Magazine Market Insight: February 2014




 
Contact Us | About Us | Subscriptions | Advertising | Home
UBM Canon © 2014  

Please visit these other UBM Canon sites

UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Plastics Today | Powder Bulk Solids | Canon Trade Shows