US: Underlying trend looks solid for durable goods orders – BMO CM

Sandeep Kanihama FXStreet Contributor

Michael Gregory, Deputy Chief Economist at BMO Capital Markets, explains that the post-election surge in US business confidence is persisting, which is starting to prod firms to execute on their investment intentions and expansion plans (in Q1, e.g., real private non-residential fixed investment grew more than 9% annualized).

Key Quotes

“Meanwhile, increasing oil exploration and production are pulling along the demand for related fabricated goods, as improving agricultural prices are starting to unwind the pent-up demand for new farm equipment. This highlights an underlying uptrend for durable goods orders. Rainy weather, elevated automotive inventories and a pullback in aircraft orders could be a problem for April’s print, but the underlying trend looks solid.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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