Durable-goods orders grow at fastest rate in 7 months as business investment rebounds

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U.S. durable-goods orders surge to seven-month high

The numbers: Orders for long-lasting durable goods posted the biggest increase in March since last summer, potentially signaling a rebound in the slower-growing industrial side of the economy.

If cars and planes are stripped out, orders rose a smaller but still solid 0.4%. Transportation often exaggerates the ups and downs in orders because of lumpy demand from one month to the next.What happened: Orders rose 31% for new commercial aircraft, mostly Boeing jets. Orders could show sharp swings in the upcoming months, however, after the worldwide grounding of the company’s 737 MAX jets following a pair of deadly accidents.

These orders, which exclude aircraft and military goods, have risen slightly more than 5% in the past year. Big picture: The industrial sector is still expanding, but not as fast as it was last year. A festering U.S. trade dispute with China, a weaker global economy and slower export growth are among the biggest headwinds.

 

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'Durable Goods Orders Show Weakest Yearly Gains In 2 Years' ZH

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