US Factory Orders: Trend in core capital orders improves - Wells Fargo

Analysts from Wells Fargo, explained that factory orders in February gained more ground, supported by a jump in aircraft orders. 

Key Quotes: 

“Another surge in aircraft led factory orders 1.0 percent higher in February. Orders for January were revised up from a 1.2 percent increase to a 1.5 percent gain on stronger core capital goods orders. While nondefense capital goods orders ex-aircraft slipped 0.1 percent in February, the trend remains solidly upward with core orders rising at a 9.4 percent three-month average annualized rate.”

“Nondurable goods, which were not previously reported, increased 0.2 percent on chemical products. In addition to strengthening demand, a rebound in prices has helped nondurables rise ahead of durable goods over the past year.”

“Although orders still look weak relative to recent purchasing managers’ indices, today’s report offers additional evidence that business spending has improved over the first quarter.”