The April durable goods report is where hard data has finally caught up to the soft where I keep hearing the debate and some trying to think one will isolate themselves from the other. We’ve heard for months in the survey data company plans to trim capital spending.
Today’s durable goods hard data finally reflected some of that with non defense capital goods aircraft line for April lower by 1.3% m/o/m vs the estimate of down .2%, only partly offset by a 2 tenths upward revision to March, seeing a .3% increase.
Core shipments, directly plugged into GDP, was down one tenth m/o/m as expected but March was revised up by 3 tenths to a .5% gain which could lift the revision to Q1.
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