The March business accelerated orders for high and long-term goods ahead of President Donald Trump’s aggressive tariffs on US imports, the Commerce Department reported Thursday.
The so-called durable goods orders spiked at 9.2% seasonally adjusted for the month, significantly surpassing Dow Jones’ forecasts by an increase of 1.6% from a 0.9% increase in February. Excluding the defense, the number of transports was flat, but the increase was even higher at 10.4%.
Transportation orders skyrocketed by 27%, with non-faulty aircraft and parts rising by 139%. In addition to aircraft and automobiles, the durable goods category also includes items such as appliances, computers, and gems.
In other economic news on Thursday, the Labor Bureau reported that initial unemployment insurance claims for the week ending April 19 had risen to a seasonally adjusted 222,000.
On the side of durable goods, the advanced report reflects the Pullword effect as Trump hanged a threat to US trading partners until March before announcing its “liberation date” obligation on April 2nd.
Wednesday’s Federal Reserve report showed businesses were adjusting their actions to preempt Trump’s tariffs.
An economic overview known as the “beige book” said that vehicle sales in particular are rising. It says this falls into the durable category “due to rushing purchases rather than rising customs related prices.”
Otherwise, he expressed concern about the economic situation, particularly in light of tariffs, indicating that March’s burst of durable orders does not show a wider environment in the long term.
On the Labor Front, Jobless’s claims report showed that layoffs have not risen despite Trump’s efforts to slice federal employment rolls.
In addition to the stable weekly figures, the ongoing bills running a week late fell to 1.84 million, down 37,000 from the previous week. Washington, DC’s bills also fell to 753, down 112 from the previous week, according to the number of outstanding.
Get tickets to Pro Live
Join the New York Stock Exchange!
An uncertain market? Earn Edge with CNBC Pro Live, the exclusive first event on the historic New York Stock Exchange.
Access to expert insights is paramount in today’s dynamic financial situation. As a CNBC Pro subscriber, we recommend attending the first exclusive and in-person CNBC Pro live event held at the iconic NYSE on Thursday, June 12th.
Join our interactive professional clinic led by professional Carter Worth, Dan Niles and Dan Ives. You will also get the opportunity to network with CNBC experts, talent and other pro subscribers during exciting cocktail hours on the legendary trading floor. Tickets are limited!
