The year-on-year increase of US durable goods reached 25.02% (previously 3.2%), with an absolute value of $256.3 billion (previously $254 billion). Year-on-year increase of nondefense new orders for capital goods reached 11.59%, to $75.9 billion in March.
MM Analysis As the impact of cold winter retreat, nondefense new orders for capital goods reached $75.9 billion in March.
The gap between the annual growth rate of new orders and the uncompleted orders continued to expand, indicating a large amount of backlog orders, it is still in the stage of restocking.
It is expected that in Q3, under a new round of 1.9 trillion fiscal spending, there would be a strong support (February savings rate: 13.6%). Driving companies to continue to invest in restocking inventory and continue the manufacturing restocking cycle as the March manufacturing PMI and retail sales data also set new highs at the same time.