New orders for manufactured durable goods are up 2.6% from February and up for the second consecutive month. Excluding the volatile transportation component, new orders were up 0.2% compared to February. Nondefense new orders for capital goods (i.e. farm machinery and construction equipment) increased sharply, climbing 5.4% in March.
After climbing the previous two months, sales of existing homes declined in March. March existing home sales came in at a 4.190 million unit rate, down 4.3% from February and down 3.7% compared to the 4.350 million unit rate in March 2023.
March retail sales came in at a $709.6 billion rate, up 0.7% from February and up 4.0% from a $682.2 billion rate in March 2023. Excluding sales from gas stations, total sales were up 0.6% from February to a $655.0 billion rate. Year-to-date actual sales are now up 3.3% compared to Q1 2023. The largest increases in March, compared to February, came from building material and garden stores, gas stations, and online retailers. These increases helped to offset declines seen in sales at motor vehicle dealers, electronic and appliance stores, and clothing stores.
Shipments of heating and cooling equipment continued to rebound in February, now up for the third consecutive month. HVAC equipment shipments totaled 1.727 million units, up 2.9% from January and up 3.7% from 1.665 million units in February 2023.
Prices paid by consumers continued to climb faster than market expectations. The March Consumer Price Index saw prices for all goods increase 3.48% compared to last year, the fastest increase since September. Within the overall CPI, both food and energy prices increased compared to year ago levels, climbing 2.2% and 2.1%, respectively. Compared to last March, the shelter component increased 5.7%, accounting for over 60% of the total increase.
After contracting for sixteen consecutive months, economic activity in the manufacturing sector expanded in March. The March ISM Manufacturing Index came in at 50.3, up from 47.8 in February and up from 46.3 last March. This is the highest monthly reading since September 2022.
After contracting for sixteen consecutive months, economic activity in the manufacturing sector expanded in March. The March ISM Manufacturing Index came in at 50.3, up from 47.8 in February and up from 46.3 last March. This is the highest monthly reading since September 2022.The production and new order components both rebounded, climbing 6.2 and 2.2 points, respectively. The increase in new orders points to firming demand for manufactured goods and suggests inventories are more aligned with sales.
New orders for manufactured durable goods increased in February after sliding the previous two months. New orders increased to a $277.9 billion rate, up 1.4% from January and followed a 6.9% decline in January.
New orders for manufactured durable goods increased in February after sliding in the previous two months. New orders increased to a $277.9 billion rate, up 1.4% from January and followed a 6.9% decline in January.
February new housing starts came in at a 1.521 million unit rate, up 10.7% from January and up 5.9% from the 1.436 million unit rate in February 2023. This is the fourth consecutive month in which starts increased on a year-over-year basis. While both single-family and multi-family starts increased in February, single-family starts led the push higher.
