June 2017 – Economic Indicators
Melanie Garza - Director of Strategy & Growth
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