U.S. Core Durable Goods Orders Drop in April
U.S. Core Durable Goods Orders Drop in April
On May 27, 2025, the U.S. Census Bureau released its latest data on Core Durable Goods Orders for April, a key indicator of manufacturing activity that excludes volatile transportation items. The report, published at 8:30 AM EDT, revealed that new orders for core durable goods, such as machinery, computers, and industrial equipment, reached a month-over-month change of 0.2%, surpassing market expectations of a -0.1% shift. This marks a slight improvement from the revised -0.2% recorded in the previous month. The broader Durable Goods Orders, which include transportation, showed a significant decline, reaching -6.3% compared to the forecasted -7.8%, reflecting volatility in sectors like aircraft and defense.
The data, part of the Manufacturers’ Shipments, Inventories, and Orders (M3) survey, provides critical insights into the health of the U.S. manufacturing sector, which accounts for roughly 10.3% of the economy. Today’s release at 8:30 AM EDT highlights a complex economic landscape. The modest growth in core orders suggests cautious optimism among businesses, as they continue to invest in equipment despite uncertainties surrounding trade policies and tariffs. Analysts note that the uptick in core orders, particularly in non-defense capital goods excluding aircraft, which hit -1.3%, reflects selective spending in response to potential cost increases from looming tariffs. Meanwhile, the sharp drop in overall durable goods orders was driven by a 32.7% surge in defense aircraft orders, which skewed the headline figure.
The report’s timing is significant, as it coincides with heightened market attention on U.S. economic indicators amid global trade tensions. Investors and policymakers closely monitor core durable goods orders to gauge future production trends and business confidence. The data released today suggests that while certain sectors remain resilient, broader manufacturing activity faces challenges. Economists emphasize the importance of tracking multi-month trends due to the volatility of monthly figures, especially in transportation-heavy categories. The next report, scheduled for June 3, 2025, will provide further clarity on whether this trend persists. For now, the May 27 release underscores a manufacturing sector navigating a delicate balance between growth and uncertainty, with implications for the U.S. dollar and equity markets.
