U.S. Durable Goods Orders Fall by Most in Six Months
U.S. durable goods orders slid by more than expected in April, today’s report from the Commerce Department noted. The median forecast according to a Bloomberg News survey showed an expected decline of 2.5 percent, after orders climbed a revised 4.4 percent in March. However, orders fell by 3.6 percent, as demand for aircraft tapered off and supply chain disruptions resulting from the earthquake in Japan weighed on orders. The measure for demand of business equipment declined by the most this year so far.
Even without the transportation component, which tends to cause wide fluctuations in the data, durable goods orders were still weak. After a 2.5 percent gain in March, durable goods ex transport fell by 1.5 percent; survey figures predicted a 0.5 percent gain. Estimates for the headline figure ranged from a 2.0 percent gain to a 5.7 percent contraction; the forecasts for the stripped figured ranged from a 1.8 percent gain to a 1.2 percent contraction.
In the minutes after the data release, the Dollar Index traded immediately lower, falling from 9730.66 to 9713.71. However, at the time this report was written, the Dollar Index was showing signs of recovering, climbing back towards 9720.00. The session high for the day is 9756.30.
Written by Christopher Vecchio, Currency Analyst
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