Orders for Long-Lasting Goods Rose Modestly in April

By David Harrison

Orders for long-lasting goods such as appliances, computers and cars rose in April, driven by an increase in new aircraft orders.

New orders for products meant to last at least three years increased by 0.4% to a seasonally adjusted $265.3 billion in April following a revised 0.6% rise in March, the Commerce Department said Wednesday. April marked the sixth increase in seven months.

Nondefense aircraft and parts orders were up 4.3%, rebounding from an 8.1% decline in March.

Excluding defense, orders of durable goods rose 0.3%.

Economists surveyed by The Wall Street Journal had forecast a 0.7% increase for overall durable goods orders.

Strong consumer spending has boosted manufacturing demand, despite ongoing supply-chain disruptions due to the war in Ukraine and Covid-related shutdowns in China, which have contributed to rising prices.

But a pullback in manufacturing orders and output could be coming. Major retailers such as Best Buy Co. reported weakening sales this month, which could signal a consumer pullback.

The Commerce Department will report April consumer-spending figures Friday morning.

New orders for nondefense capital goods excluding aircraft, so-called core capital goods, a closely watched proxy for business investment, rose 0.3% to $73.1 billion in April compared with the previous month.

Write to David Harrison at [e-mail]

(END) Dow Jones Newswires

05-25-22 0921ET