U.S. Durable Goods Orders Surge 9.2%
U.S. Durable Goods Orders Surge 9.2%
On April 24, 2025, the U.S. Census Bureau reported a significant increase in durable goods orders for March, with a 9.2% rise to $315.7 billion. This marks the third consecutive month of growth, following a revised 0.9% increase in February.
The surge was primarily driven by transportation equipment orders, which jumped 27% to $124.6 billion. Notably, commercial aircraft orders soared by 139%, largely due to Boeing receiving 192 aircraft orders.
Excluding transportation, new orders were virtually unchanged, indicating that the growth was concentrated in the transportation sector. Similarly, core capital goods orders, which exclude defense and aircraft, rose modestly by 0.1%, suggesting cautious business investment amid economic uncertainties.
Shipments of durable goods increased by 0.1% to $293.0 billion, marking the fourth consecutive monthly rise. Primary metals led this increase, with a 0.8% gain to $27.8 billion.
Unfilled orders grew by 2.0% to $1,429.6 billion, driven by a 3.1% increase in transportation equipment backlogs. Inventories also rose for the fifth consecutive month, up 0.1% to $533.3 billion.
Economists caution that while the headline figures are strong, the underlying data suggests that business investment remains tepid. The modest rise in core capital goods orders reflects ongoing concerns about trade tensions and potential tariffs, which could impact future investment decisions.
The next report on durable goods orders is scheduled for release on May 27, 2025, which will provide further insights into the manufacturing sector’s performance amid evolving economic conditions.
