Durable goods rise beats forecast

April orders jumped on rebound in transportation orders; but orders excluding transportation dipped.

May 25, 2005: 8:38 AM EDT
 
WASHINGTON (Reuters) - New orders for long-lasting U.S.-made goods jumped by a larger-than-expected 1.9 percent in April on a big rebound in transportation orders, a government report said Wednesday.

But excluding the volatile transportation category, orders for durable goods -- big-ticket items meant to last three years or more -- dipped unexpectedly by 0.2 percent.

The Commerce Department said durable orders excluding transportation have declined in two of the last three months, and those orders were at their lowest dollar amount since December.

Revisions moved the previous month's readings up, however. Durable goods orders in March were revised to show a 1.6 percent drop, up from a previously reported 2.3 percent decline. Excluding transportation, orders were up 0.2 percent in March from a prior reading of a 0.5 percent fall.

The report offered a mixed picture for factory and business spending plans. Wall Street economists had expected durable goods orders to climb 1 percent overall and 1 percent excluding transportation.

Transportation equipment orders rose 8.2 percent as orders for civilian aircraft and parts rose 28.2 percent and military aircraft orders surged 26.3 percent. Both reversed large drops in March.

Computer orders jumped 15.8 percent after a 5.3 percent slide in March.

The report suggested an upturn in business spending plans as orders for non-defense capital goods, excluding aircraft, rose 1.6 percent, reversing a 1.6 percent drop the preceding month.