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.