-- Demand for US durable goods rebounded more than projected in March, led by computers and electronic products, while new orders for civilian aircraft slumped, government data showed Wednesday.
Orders for tangible items with an average life of at least three years increased 0.8% sequentially to $318.88 billion last month, following a 1.2% drop in February, the Census Bureau said. The consensus was for a 0.5% gain for March in a survey compiled by Bloomberg.
Demand for computers and electronic products rose 3.7%, while several other components also saw gains. New orders for defense aircraft and parts surged roughly 17% last month, while the civilian aircraft component tumbled 21%.
Demand for defense capital goods jumped 18% month on month in March, while the nondefense component saw a 1.2% drop, the data showed.
Earlier this month, planemaker Boeing (BA) said it booked orders for 161 aircraft in the first quarter, down from 241 a year earlier. For March alone, the company booked 33 gross orders.
Government data showed Wednesday that US housing starts unexpectedly jumped in March amid strength in both single-unit and multi-family projects.
"Surging capital goods orders and housing starts in March suggest the US economy strengthened meaningfully in the first quarter," BMO Capital Markets Senior Economist Sal Guatieri said in a note.
Excluding transportation, durable goods orders rose 0.9% last month, higher than Wall Street's 0.4% growth view, according to government data.
Official data are expected to show Thursday that the US economy grew at a "solid" 2.3% annualized rate in the first quarter, Guatieri said Wednesday. "There appears to be no let-up in the (artificial intelligence-driven) investment boom."
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