Durable Goods Orders Rebound Less Than Expected

Orders for durable goods—products expected to last three years or more—recovered partially in March, increasing 0.5% after dipping 0.9% in February, said the Commerce Department on Monday. Orders for the month totaled $256.3 billion, increasing for the 10th time in the last 11 months, but at a much lower rate than the 2%-plus uplift expected by economists.

The softness in orders was due to a sharp decline in orders for commercial (-46.9%) and military aircraft (-20.2%). Automotive orders rose 5.5% after a 9% decline in March despite automakers still struggling with a semiconductor shortage. Combined orders in the transportation category fell 1.7%.