Economic Watch: Equipment Spending Solid, New Homes Sales Brisk
New orders for long-lasting durable goods increased less than expected during March, according to a new Commerce Department report, but business investment on equipment appears to be solid following the rut it was in for nearly a couple of years.

New orders for long-lasting durable goods increased less than expected during March, according to a new Commerce Department report, but business investment on equipment appears to be solid following the rut it was in for nearly a couple of years.
New orders increased 0.7% from the month before, the third straight monthly hike, following a upwardly revised 2.3% gain in February, but short of expectations of a 1.3% increase. The latest gain was driven by new transportation orders, up 2.4%. Excluding transportation, new orders fell 0.2%.
Shipments of durable goods improved 0.2%, the fourth increase in the past five months.
The report also showed new orders for non-defense capital goods minus aircraft, an indication of business investment, increased 0.4%. That followed a 1.1% rise in February.
Wells Fargo Securities Senior Economist Tim Quinlan pointed out that with this latest report, non-defense capital goods orders are running at a 6% percent three-month average annualized pace, compared to contracting as recently as this past summer.
“While that still looks sluggish relative to ‘soft’ indicators on the factory sector, including the ISM manufacturing index, both the hard and soft data indicate a decent pace of expansion for manufacturing and 50% business spending,” he said.
According to Quinlan, while overall orders were somewhat disappointing in March, shipments suggest business spending for the first quarter as a whole was solid.
“Real equipment spending has begun to claw its way back from the hole dug from late 2015 through most of last year, and today’s reading on shipments points to a strong increase in first quarter business spending in tomorrow’s [Friday’s] GDP report,” he said. “The slower pace of core capital goods orders, however, suggests a more moderate clip in the second quarter, but that business spending should continue to grow in the months ahead.”
New Home Sales Surging
Meanwhile, sales of newly built, single-family homes rose for the third straight month in March, increasing 5.8% from the upwardly revised level the month before to a seasonally adjusted annual rate of 621,000 units, according to a separate report from the Commerce Department.
The level of March home building is the best in eight months and beat a consensus estimate from analysts. When activity during the month is compared to the same time a year earlier, home building increased 15.6%
“The March sales numbers are the second highest on record since the Great Recession, which is especially encouraging considering the poor weather conditions throughout many parts of the country,” said National Association of Home Builders chief economist Robert Dietz. “With tight existing home inventory, rising household formations and continued job creation, we can expect further growth in new home sales moving forward.”
More Fleet Management
Trimble’s New AI Agent Takes Aim at Fleet Back-Office Busywork
Arc Agent works across Trimble TMS products to automate repetitive tasks such as freight orders, maintenance, invoices, fuel costs and more.
Read More →
How HDT’s 2026 Truck Fleet Innovators Are Rethinking Fleet Operations
Meet five trucking leaders who are challenging assumptions, solving operational problems, and putting innovative ideas to work.
Read More →
Tight Trucking Capacity Pushes Rates Higher Even as Freight Volumes Fall
“Spot rates moving ahead of contract rates have historically signaled a tightening market, but we haven’t seen a capacity-driven market quite like this one,” said DAT's Dean Croke.
Read More →
Import Cargo’s Early Peak Season is Winding Down
There was an early start to peak season this year at the nation's gateway ports, as retailers brought in merchandise ahead of tariff changes in late July and responded to other supply chain uncertainties,
Read More →
Fewer Cargo Thefts, Bigger Losses: Criminals Target Higher-Value Loads
CargoNet says organized theft rings are stealing fewer shipments but choosing more valuable freight, including metals and technology, resulting in record losses.
Read More →
How Innovative Trucking Leaders Turn Change Into an Advantage
As the pace of change accelerates in trucking, the fleets that adapt best have more than the latest technology. They have cultures that embrace improvement.
Read More →
Freight Broker Bonds Just Got Harder to Get. Here's What That Means for Your Fleet.
When it gets harder for a freight broker to prove they are financially sound, the ones who cannot clear that bar get pushed out of the market. And those are exactly the brokers who used to leave motor carriers holding the bag.
Read More →
Long-Awaited Canadian Border Bridge to Open in Detroit
For trucking, the bridge opening should offer immediate improvements in efficiency and reliability, with new customs facilities, expanded inspection capacity, and direct freeway-to-freeway connections.
Read More →
Aurora Rolls Out Next Generation of Driverless Trucks for Commercial Freight
Aurora's latest autonomous trucks it's rolling out with International feature lower-cost hardware designed for a million miles as the company expands commercial driverless freight operations across the U.S. Sun Belt.
Read More →
Freight Tonnage Down, Rates up, as Lower Capacity Powers Trucking Recovery
The recovery from the freight recession continues to be driven by reduction in capacity rather than by increased demand.
Read More →
