US durable goods orders drop in April, as expected

US durable goods orders fell as expected in April, although the previous month's count was revised significantly higher.

Orders for goods made to last more than three years dropped by 0.5% month-on-month, to reach $235.5bn, according to the Department of Commerce.

That was exactly in line with the consensus estimate.

Excluding the transport sector orders were higher by 0.5% (consensus: 0.3%) while if defence orders are excluded then the tally was a rise of 0.2% month-on-month.

As well, the previous month’s estimate for total durable goods orders was revised higher to show a rise of 5.1% on the month, ahead of the preliminary estimate for a gain of 4%.

Orders for non-defence capital goods excluding aircraft grew by 1% (consensus: 0.3%) in comparison to March but were still down 2.5% year-on-year.