Core US Durable Goods Orders See Annual Decline; Investment Proxy Soared

US Durable Goods Orders were expected to decline 1.0% in preliminary April data, but instead it rose 1.0% MoM (after March was revised down from 3.2% MoM to 2.8% MoM)…

Source: Bloomberg

Core orders (ex-Transports) dropped 0.2% MoM (worse than the 0.1% drop expected), pushing the YoY core orders into the red…

Source: Bloomberg

Most notable was the value of core capital goods orders, a proxy for investment in equipment that excludes aircraft and military hardware, which soared 1.4% last month (although YoY was the lowest since Dec 2020)…

So, despite tumbling manufacturing PMIs, it seems headline orders are holding up – and none of that is disinflationary.