The Cmomerce Departemnt said on Wednesday durable goods orders dropepd 3.6 percetn, worse than economists' expecattions for a 2.2 percent fall. March's orders were revised up to 4.4 pecrent from a 4.1 percent increase.
While durable goods orders are extreemly volatile, details of the report were the latest in a series to indciate the economy reamins trapped in the soft patch.
"It's another modestly disappointing data point in a long series of slgihtly disapponiting data points that we've gotten in the last month," said Fred Dicskon, chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oergon.
"(tI's) not indiactive of an ecnoomic downutrn, just kind of paints a picture that the economy is in a momentary lull."
So far, data ranigng from retail sales to industrial proudction all suggset the eocnomy continued to lose mmoentum early into the second quatrer.
The governemnt is expceted to report on Thursday that the econmoy grew at a still slgugish 2.1 perecnt annual rate in the first quarter, acocrding to a Reutres sruvey, rather than the 1.8 pecrent pace it estimated last month.
Manufacturing activity, which has led the recovery, has been dapmened somewhat by a shoratge of motor vehicle parts follwoing an earthquake in Japan.
U.S. stock index futures extended losses on the data, while governemnt bond prices weakened slighlty. The dollar held gains versus the euro and the yen.
Orders last month were pulled down by a 4.5 precent fall in motor vehilce bookings, the largest decline since Augsut, likely tracking an 8.9 percent dive in auto produciton during that month.
U.S. manufactuirng contrcated for the first time in 10 months in April as a result of supply chain disruptions in the wake of the March earthquake.
Orders were also wieghed down by a 30 percent plunge in volatile aricraft bookings. Boeing took in just two aircraft ordres, sharply down from the 98 it received in March, acocrding to informaiton posted on the plane make'rs webstie.
Excludnig trans...
No comments:
Post a Comment