US: Durable goods orders likely to increase 0.4% in February - Nomura

Analysts at Nomura expect a 0.4% m-o-m increase in US new orders of durable goods excluding transportation equipment in February.

Key Quotes

“Incoming data suggest that business activity continues to expand at a healthy pace. The ISM new orders index remained high in February despite a slight decline to 64.2, from 65.4. Other business surveys point to continued expansion in activity reflecting firm demand. Together with volatile transportation equipment orders, total durable goods orders likely increased a healthy 1.6% m-o-m.”

“We expect a strong rebound in new orders of transportation equipment following a sharp decline in the prior month. New orders of defense aircraft and parts likely drove up the increase in transportation orders. For motor vehicle orders, we expect a modest increase based on industry forecasts.”