Hours: Monday - Friday 8:00 am - 5:00 pm


Durable goods orders bounced back in March

REAL ECONOMY BLOG | April 26, 2022

Authored by RSM US LLP

Orders for durable goods bounced back in March despite interest rate hikes and supply shocks from geopolitical conflict. The top-line durable goods orders increased by 0.8% in the month following February’s upwardly revised figure of a 1.7% decline, according to a report from the U.S. Census Bureau on Tuesday.

March’s increase was helped by gains in vehicle orders and core capital orders that exclude defense and transportation. The increases came as domestic producers have been investing more in productivity-enhanced equipment to combat labor shortages and supply chain disruptions.

Orders for nondefense capital goods excluding aircraft rose by 1% on the back of orders for vehicles and parts, which increased by 5%, and electrical equipment, which rose by 3.9%.

capital goods


Shipments of capital goods dropped by 0.3% on the month, while the core version that strips out defense and aircraft components grew by 0.2%.

On a quarterly basis, core capital goods shipments—which will feed into the investment component of the gross domestic product calculation for the first quarter—rose by 3.7% following a 2% increase in the prior quarter. That suggests a solid pace of investment growth in the first quarter.

With orders continuing to outpace shipments, inventories of durable goods remained low, growing by 0.7% on the month. Inventories of core capital goods grew by 1.0%, the lowest since September.

Unfilled order growth showed signs of easing yet remained positive, rising by 0.4% in March compared to 0.5% previously. The inventory-to-shipment ratio inched down to 1.76 from 1.77 in February.

The takeaway

Solid business investment growth is a testament to the resilience of American businesses that continue to bounce back from the shock of the pandemic. We should expect durable goods orders to moderate, however, as monetary policy is tightened and as long-term growth eases to more normal levels.

Let's Talk!

Call us at (325) 677-6251 or fill out the form below and we'll contact you to discuss your specific situation.

  • Topic Name:
  • Should be Empty:

This article was written by Tuan Nguyen and originally appeared on 2022-04-26.
2022 RSM US LLP. All rights reserved.

RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each is separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/about us for more information regarding RSM US LLP and RSM International. The RSM logo is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.

Condley and Company, LLP is a proud member of the RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.

Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise and technical resources.

For more information on how Condley and Company can assist you, please call (325) 677-6251.

Share This