Orders for US-made, large-price tag manufactured goods persevered their upward trend final month, although at a slower pace, pushed frequently by means of demand for commercial aircraft, consistent with authorities data launched Wednesday.
Durable goods orders rose 0.4 percent in April, the Commerce Department stated, barely less than what analysts had anticipated but nevertheless indicating fine momentum.
Orders have increased for six of the past seven months, though the gain in March was lower than originally reported, which analysts say shows the US economy is on solid footing despite rising inflation pressures, which has prompted the Federal Reserve to begin raising interest rates aggressively to cool demand.
“We don’t believe the economy is on the cusp of a major slowdown,” said Oren Klachkin of Oxford Economics. “Domestic demand hasn’t majorly succumbed to the pressures of high inflation, rising interest rates, and enduring supply chain problems.”
“While it may take time for these headwinds to weigh on business and consumer activity, we think the economy’s fundamentals are strong enough to weather the storm in 2022,” he said.
A key driver of the increase was ordered for nondefense aircraft and parts, which jumped 4.3 percent, while defense aircraft and parts increased one percent, according to the data — after both sectors plunged in March.
However, motor vehicles and parts dropped 0.2 percent, while overall transportation equipment rose 0.6 percent compared to the prior month.
Supply chain snarls, specifically semiconductor shortages have been weighing on more than one industry for months, and the record confirmed orders for communications devices reduced by 1.3 percent, and laptop products fell 0.7 percent.
Ian Shepherdson of Pantheon Macroeconomics recommended that the numbers may be “erratic.”
“It’s entirely possible that the recent slowing is nothing more than a temporary reaction to the spike in energy prices; firms might be waiting to see how consumers respond,” he wrote in an analysis. “So far, we see no evidence of any hit” with the exception of housing sales.
Excluding transportation, durable goods orders rose 0.3 percent in April, the report said.
