April Durable Goods Orders Rise

Date: May 27, 2016

Boost In Orders Driven By 64.9% Increase In Civilian-Aircraft Orders

According to the latest Commerce Department data, in April orders for durable goods increased by a 3.4% seasonally-adjusted rate compared to March durable goods orders. The Wall Street Journal reports that this result was higher than the 0.7% increase predicted by economist surveyed by the Journal, with a 64.9% rise in civilian-aircraft orders driving the higher increase. However, orders on non-defense capital goods excluding aircraft – considered a proxy for business investment – dropped 0.8% in April after seasonal adjustments, with the category now down 4.1% over the first four months of 2016 as compared to the same period in 2015. The AP reports that durable goods orders rose by 1.9% in March. However, in April, non-defense capital goods excluding aircraft dropped again after falling 0.1% in March and 2.1% in February. The AP adds that “Total orders in all transportation categories were up 8.9 percent,” with motor vehicles and parts orders up 2.9 percent. Meanwhile, orders for computers and related products as well as appliances and other electrical equipment all rose in April. Bloomberg News reports “Excluding transportation equipment, orders rose 0.4 percent in April after a 0.1 percent gain a month earlier.”

What This Means For Small Businesses

Small businesses are no stranger to the uneven economic recovery the US has experienced since the recession. The latest Commerce Department data further highlights that demand for some goods is increasing, but this rising tide isn’t lifting all boats, and uneven growth does little to alleviate economic concerns. As NFIB Chief Economist Bill Dunkelberg wrote in the latest Small Business Economic Trends report, “Small business owners remain extremely pessimistic about the economy, and rightfully so.”

Additional Reading

Business Insider also covers the latest Commerce Department report.

Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.

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