Washington, DC, April 26, 2006--Orders for durable goods increased 6.1% in March, led by strong demand for airplanes, machinery and electronics, according to a Commerce Department report.
The increase in new orders was the largest since May 2005 and far exceeded the 2.1% gain expected by economists.
Orders in February for durables were revised up to 3.4% in February. Orders on a year-to-date basis are up 12.2% and have increased in five of the past six months.
Orders for civilian aircraft, which increased 71% in March after a 60% gain in February. Orders for airplanes are up 130% year-to-date, reflecting strong export sales by Boeing in particular.
Excluding the 14% rise in transportation goods, new orders rose 2.8% in March, the biggest gain since August.
Outside of aircraft, durable orders were still strong. Orders for core capital equipment goods--the best indication of business investment plans--increased 3% in March after falling 0.8% in February. Core capital goods shipments increased 1.6%.
Shipments of durable goods rose a more modest 0.3% in March after a 0.4% gain in February. Shipments are up 8.2% year-to-date.
In March, orders for transportation goods increased 14%, including the 71% gain in aircraft. Orders for motor vehicles rose 2.8%. Shipments of transportation goods rose 0.8%.
Orders for computers and electronics (excluding semiconductors) rose 7.5%. Shipments fell 3.3%.
Orders for machinery rose 7.5% after falling 7.7% in February. Shipments rose 3.2%. Orders for fabricated metal products increased 1.3%. Shipments rose 0.5%. Orders for primary metals increased 1.1%. Shipments rose 0.5%.
Orders for electrical equipment fell 1.8%. Shipments rose 1.7%. Orders for defense capital goods increased 12.6%. Shipments rose 2.7%. Excluding defense goods, new orders rose 6%
