U.S. durable goods order likely to have fallen 1.9 pct in April

Durable goods orders growth in the U.S. had come in below consensus in March, recording a growth of 0.9 percent as orders of motor vehicles dropped while aircraft orders rose sharply. Boeing had recorded 15 orders in April, as compared with 147 in March, increasing the possibility that total durable goods orders dropped on a month-over-month basis in April. Nondefense capital goods orders, excluding aircraft, seemed to be weakening since the end of last year on subdued orders of computers and electronics.

The April’s ISM survey’s new orders index also dropped from recent highs, implying either some moderation in core goods orders might be possible for April, or that weak data are beginning to come back in line after the post-election surge. According to Wells Fargo, the hard data from the factory sector is expected to show a gradually rebounding trend behind month-to-month volatility. Durable goods orders are likely to have dropped 1.8 percent in April, added Wells Fargo.