Durable Goods Falls

 New orders for durable goods retreated in April following a run of five months of consecutive growth.  In March, new orders for durable goods increased 2.3%, and they slipped 0.7% in April according to the Commerce Department.

Business investment in durable goods dropped considerably in April.  Construction equipment orders fell -16% following a significant increase of 18% in March.  Industrial machinery spending dropped -2.4%, while HVAC equipment investment moved down -3.1% in April.

Orders for transportation equipment fell 1.2% while commercial aircraft new orders fell by 9.2%.

Q1 GDP Retreats

 Economic growth in the first quarter of 2017 posted a significant decrease compared to the Q4 GDP rate.  The Bureau of Economic Analysis reported the economy grew just 0.7% over Q4, making it the weakest pace since Q1 of 2014.  In Q4 of 2016, GDP grew 2.1%.   Economists predicted GDP would grow at 1.2% in Q1.

Lower consumer spending attributed to much of the poor performance which grew just 0.3%.   Consumer spending makes up about 2/3 of the GPD.  Government spending also fell 1.7%.

Questions or comments? Please contact Melanie Garza at mgarza@teamCOACT.com