Durable Goods Orders Rebound In Feb From January Collapse, Defense Spending Slides

by Tyler Durden

Tuesday, Mar 26, 2024 – 08:38 AM

After crashing in January (driven by the collapse in Boeing orders), durable goods orders (preliminary) for February rose 1.4% MoM (better than the +1.0% MoM exp), and notably swinging from a downwardly revised 6.9% MoM plunge in January (from -6.2%)…

Source: Bloomberg

That dragged the headline orders up 4.6% YoY. Ex-Transports also beat, rising 0.5% MoM (vs +0.4% exp) and up 1.3% YoY.

Non-defense aircraft orders jumped 24.6% MoM as it seems people are ordering Boeings again? Defense spending tumbled 12.7% MoM…

Source: Bloomberg

Computer & related products saw another big MoM rise as perhaps this is the AI cycle showing up in the data…

Source: Bloomberg

On the bright side, core capital goods shipments, a figure that is used to help calculate equipment investment in the government’s gross domestic product report, continued its strong bounce back from YoY contraction in December. However, on a seasonally-adjusted basis, core capital goods shipments fell 0.4% MoM

Source: Bloomberg

The YoY rebound is not exactly a signal that portends rate cuts!

https://www.zerohedge.com/markets/durable-goods-orders-rebound-feb-january-collapse-defense-spending-slides