Durable Goods Orders Spike 7.9% In April, Much More Than Expected

U.S. durable goods orders rose 7.9% in April, far above economists’ 2.8% forecast, the Commerce Department reported. April’s gain followed a revised 1.3% increase in March. Transportation equipment led the surge, up 21.5% in April after a 1.7% March rise, with non-defense aircraft and parts jumping 165.9% in April after a 23.0% drop in March. Excluding transportation, orders rose 1.1%, matching March’s revised gain. Other strength came from fabricated metal products (+3.5%) and primary metals (+1.9%), while non-defense capital goods excluding aircraft fell 1.1% in April after +3.9% in March. Shipments in the non-transport sector rose 0.4% in April.