New orders for long-lasting goods at manufacturers in the U.S. closed the first quarter with a substantial increase, affirming the sector’s robust strength, according to Reuters. On Wednesday, the Commerce Department reported that durable goods orders increased by 2.5% in March from the previous month, whose data was revised upwards to show a 0.7% increase rather than the 0.6% increase initially estimated. The latest gain outpaced economists’ forecast for a 2.0% gain.
Within the report, durable goods orders excluding transportation were seen higher by 1.3%, and February’s data was revised to show a modest gain rather than a small loss, as had been initially reported. Non-defense capita goods orders excluding aircraft were up 3.7% in March, indicating that business spending strengthened substantially. Julia Coronado of BNP Paribas said, “It’s a pretty solid report,” adding, “The manufacturing sector remains one of the stronger sectors in the economy while other sectors lag.