U.S. durable goods orders up slightly in April

Orders for long-lasting factory goods edged up slightly in April, while a measure tracking business investment spending fell for a second straight month. Durable goods orders increased 0.2% last month after a 3.7% decline in March, the Commerce Department reports this morning. Gains in volatile commercial aircraft orders and more demand for autos and parts drove the modest increase. So-called core capital goods orders, which are considered a proxy for business investment plans, fell 1.9% in April after a 2.2% decline in March. Demand for computers and electronics products and heavy machinery fell. Durable goods are items expected to last at least three years. Orders rose in April to $215.5 billion, up 52.5% from their recession low, hit in the spring of 2009. Orders are still 11.6% below their peak in December 2007. The decline in core capital goods could suggest that second-quarter growth is off to a slow start. Still, orders tend to fluctuate sharply from month to month. Many economists are approaching today’s report cautiously, noting that the findings conflict with two other reports suggesting factory activity and production grew last month. The Institute for Supply Management reports factory activity grew in April at the fastest pace in 10 months. The group’s closely watched index shows strength in new orders, production and hiring. And the Federal Reserve reports that U.S. factory output rose 0.6% in April: Half of that increase reflects a big jump in production of motor vehicles and parts.