US durable goods orders rose 0.8 per cent in April, but business investment demand declined

WASHINGTON – Orders to U.S. factories for long-lasting manufactured goods advanced for a third month in April, but much of the strength came from a big surge in demand for military aircraft. Orders in a category that signals business investment plans fell by the largest amount in three months.

The Commerce Department says orders for durable manufactured goods rose 0.8 per cent after a 3.6 per cent gain in March and a 2.6 per cent rise in February. The April strength came from a big jump in demand for defence goods including airplanes. Excluding defence, orders would have fallen 0.8 per cent in April.

Orders for core capital goods, a category viewed as a good proxy for business investment plans, fell 1.2 per cent in April. It was the weakest showing since a 1.9 per cent January drop.