Durable Goods, Factory Orders, Shipments Rise in March

Manufacturers shipped 1.0% more durable goods in March than February and booked 2.0% more orders, according to a Commerce Department report.

Both orders and shipments had fallen sharply in February after a large gain in January. This seesaw pattern over the quarter resulted in a 1.1% quarter to quarter gain in orders and a 0.6% fall in shipments that would be close to no change in volume after falling prices.
The strong March report is consistent with the previous 2.0% rise in retail sales in March, according to Jim Haughey, Newport Communications' senior economist. Inventories were steady and unfilled orders rose 0.3%. Both suggest that further small gains are likely in April. Early reports show that rapid gains in retail sales continued into April.
The only industries with lower March shipments were computers (-4.3%) and motor vehicles (-0.4%). These have been the two industries with the most sales growth over the last year.
The March declines are more likely interim inventory rebalancings than a shift to a downward trend, Haughey said. Fabricated metals, machinery, electronic components and telecom equipment had the largest sales gains.