Durable goods shipments dropped 0.7% in April, orders declined 2.4% and inventories slipped 0.1%.
April's report reflects weak prewar orders but already postwar consumer reports show significant improvement in confidence, retail sales and home buying, said Newport Communications senior economist Jim Haughey.
"The near-term trend is modestly higher with a boost from still falling credit costs, the new tax cuts and relatively balanced inventories," he said.
Computer and electronic shipments increased 3.6% in April, while all other manufacturing sectors had declining shipments. Computer, peripheral and storage product sales soared 20.2% but this only reverses steep declines in the previous two months. It is not a change in trend and will be hard to sustain while end-market customers have declining sales. Telecom shipments fell 2.2% to 5.6% below last April. Sales have increased briefly several times in the last year but the trend continues to be modestly down.
Commercial aircraft shipments plunged 11.3% as manufacturers are competing with the resale of surplus planes. The shipments decline was 0.3%, excluding this industry that generates very little motor freight.
Haughey predicts next weeks' report on nondurable goods should be more positive.
April's report reflects weak prewar orders but already postwar consumer reports show significant improvement in confidence, retail sales and home buying, said Newport Communications senior economist Jim Haughey.
"The near-term trend is modestly higher with a boost from still falling credit costs, the new tax cuts and relatively balanced inventories," he said.
Computer and electronic shipments increased 3.6% in April, while all other manufacturing sectors had declining shipments. Computer, peripheral and storage product sales soared 20.2% but this only reverses steep declines in the previous two months. It is not a change in trend and will be hard to sustain while end-market customers have declining sales. Telecom shipments fell 2.2% to 5.6% below last April. Sales have increased briefly several times in the last year but the trend continues to be modestly down.
Commercial aircraft shipments plunged 11.3% as manufacturers are competing with the resale of surplus planes. The shipments decline was 0.3%, excluding this industry that generates very little motor freight.
Haughey predicts next weeks' report on nondurable goods should be more positive.
Read more about
Economy
media brand
0 Comments
See all comments