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Aviation News Drop in US aircraft sales drag down April durable goods

Drop in US aircraft sales drag down April durable goods

AFP
25 MAY 2018 | 286 words

A sharp drop in sales of US civilian aircraft held down durable goods orders in April, offsetting strong gains in other areas, according to government data released Thursday.

Despite the overall decline, the numbers showed some signs of continuing health in the crucial manufacturing sector at the start of the second quarter.

The April slump could still weigh on GDP growth, however.

Total orders for big-ticket manufactured items fell 1.7 percent for the month to $248.5 billion, slightly lower than economists were expecting.

But for the year-to-date, orders were still up 9.6 percent over the same period in 2017.

Volatile civilian aircraft sales fell 29 percent, giving back half of March's 60 percent increase and likely reflecting a decline in bookings by Boeing.

Auto sales rose a solid 1.8 percent ahead of the summer driving season. Defense aircraft rose 7.5 percent, reversing March's drop.

But outside the volatile transportation sector, which sees big swings from month to month, orders rose a healthy 0.9 percent from the prior month, the third straight monthly gain and faster than the 0.4 percent increase seen in March.

While orders for machinery fell, manufacturers in most other sectors saw significant increases, including computers and related products, and electrical and communications equipment.

Primary metals and fabricated metal products, industries which have seen rising prices due to tariffs on aluminum and steel imposed by US President Donald Trump in March, gained 1.3 percent and two percent respectively.

Non-defense capital goods orders, a segment which can track changes in the price of oil, rose a solid one percent, more than reversing March's decrease.

 
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