US April Durable Goods Orders Surge 7.9% on Boeing Demand, Core Orders Slip

U.S. durable goods orders soared 7.9% in April, far outpacing the 3.5% consensus, the Commerce Department reported Thursday. The jump was fueled by a 165.9% surge in nondefense aircraft and parts, reflecting Boeing (BA) booking 136 new plane orders during the month. However, core capital goods orders — a proxy for business investment that excludes aircraft and defense — unexpectedly fell 1.1%, missing forecasts for a 0.4% gain. The decline underscores lingering caution among businesses facing elevated interest rates and geopolitical tensions. Excluding transportation, orders rose a modest 1.1%. Core capital goods shipments edged up 0.4%, signaling some resilience in equipment spending, partly driven by AI infrastructure demand. Still, disruptions around the Strait of Hormuz and higher raw material costs add headwinds for manufacturers.