Q1 Non-farm Up, Factory Orders Up, Durable Goods as Forecast
Q1 non-farm productivity rose to 3.6%, up to levels not seen since 2015, a good signal for growth outlook. US factory orders surpassed expectations, registering gains of 1.9% for March vs. a market forecast of 1.6%. Durable goods came in as expected at 2.6%, but the non-defense capital goods reading (ex-aircraft) was a bit higher at 1.4%.
Factory orders month over month for February 2019 were down 0.5% vs estimates of -0.6%, slightly beating estimates.
The negative numbers most likely have to do with a hangover from the government shutdown at the turn of the year and continuing uncertainty over trade policy with China as negotiations drag on.