The report on February’s durable goods rose again, albeit at a slower pace than expected. Orders rose by 2.2% to a seasonally adjusted $211.77 billion in a report from the Commerce Department. Dow Jones had published expectations of about 3.0%.
On an ex-transportation basis the Durable Goods report would have been up 1.6%, while ex-Defense was up by 1.7%. Computers and electronics saw a 2.7% increase in new orders.
The durable goods report is a key barometer of capital spending, but it is also one of the most volatile readings out there because it involves so many big ticket items. So far we are not seeing any major market reactions to the report.
JON C. OGG