US Durable Goods Orders Post A Massive Decline, But That Came Mainly From Transportation - Forex News by FX Leaders

US Durable Goods Orders Post A Massive Decline, But That Came Mainly From Transportation

Posted Friday, April 24, 2020 by
Skerdian Meta • 1 min read

US durable goods orders have been volatile since September last year, turning from positive to negative often. But, we also have seen some decent increases in recent months. Although, it was evident that in march durable goods orders were going to post some major declines, as businesses close down, which they did. Below is durable goods orders report for March:

US March prelim durable goods orders

  • March prelim durable goods orders -14.4% vs -12.0% expected
  • Prior was +1.2%
  • Ex transport -0.2% vs -6.5% exp
  • Prior ex transport -0.6% (revised to -0.7%)
  • Capital goods orders non-defense ex air +0.1% vs -6.7% exp
  • Prior capital goods orders non-defense ex air -0.9% (revised to -0.8%)
  • Capital goods shipments non-defense ex air -0.2% vs -0.7% exp
  • Prior capital goods shipments non-defense ex air -0.8% (revised to -0.9%)

As shown above, orders declined by a massive 14.4%, which is even bigger than expectations, which were for a 12% decline. But, the positive thing here is that almost all the contraction in orders has come form transportation orders. With people being locked down and the lock-down lasting for who knows how long, there are hundreds of millions of vehicles which are left to rot. So, as long as the lock-down lasts, orders for vehicles will be low.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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