New Orders in Durable Goods decreased -3.6% for April 2011, after last month's +4.4% increase, which was significantly revised. New orders dropped $7.1 billion to $189.9 billion in a month. That's not good news and the biggest drop since October 2010.
Core capital goods new orders decreased -2.6%, after increasing 5.4% last month. Core capital goods is an investment gauge for the bet the private sector is placing on America's future economic growth.
For all transportation equipment, new orders plunged -9.5%. While nondefense aircraft plunged -30%, motor vehicles, which is not nearly as volatile as aircraft, decreased -4.5%. Even when factoring out transportion, durable goods new orders declined -1.5%. We cannot blame air-o-planes this time.
New orders have declined three of the last three months. New orders in machinery, down -3.4%; computers, down -4.4%; communications equipment, down -3.4%; electrical, appliances, down -4.9%. We have across the board declines and generally, a dismal report.