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U.S. Durable Goods Orders Surge 9.2% in March, Driven by Aircraft Demand

A rush to beat tariff hikes fueled a record spike in commercial aircraft orders, while core business investment remained tepid.

Boeing 737 MAX aircraft are assembled at the company's plant in Renton, Washington, U.S. June 25, 2024. Jennifer Buchanan/Pool via REUTERS/File Photo
A woman takes a look at the interior of a kitchen appliance at an electronics and appliances retailer in Montebello, Calif., on April 16, 2025.
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Overview

  • The Commerce Department reported a 9.2% increase in durable goods orders for March, the largest monthly gain in years.
  • Transportation equipment orders rose 27%, with commercial aircraft bookings skyrocketing by 139%, largely benefiting Boeing, which received 192 orders in March compared to 13 in February.
  • Excluding defense, durable goods orders climbed 10.4%, but non-defense capital goods orders excluding aircraft edged up just 0.1%, reflecting weak underlying business investment.
  • The Federal Reserve's Beige Book attributed the surge to companies accelerating purchases to avoid higher costs from newly imposed U.S. tariffs on imports.
  • The broader economic outlook remains cautious, with economists warning the spike may be temporary and driven by transient factors rather than sustained growth.