US: Durable goods orders likely declined 1.2% in April - Nomura

Analysts at Nomura expect that US durable goods orders in April likely declined 1.2% m-o-m driven by weaker orders of new transportation equipment.

Key Quotes

“We think new orders of autos and civilian aircraft and parts softened during the month while defense aircraft orders likely picked up. Excluding volatile transportation equipment, we forecast a 0.6% m-o-m increase in durable goods orders.”

“Incoming data point to solid momentum in industrial activity heading towards end-Q2. Production of ex-transportation durable goods rose solidly by 0.7% m-o-m in April after a decline in March. Moreover, incoming business surveys point to elevated activity near term despite concerns over US trade policy.”