Durable Goods (Apr.)

The modest 0.4% m/m rise in durable goods orders in April suggests that rate-sensitive business equipment investment growth is beginning to slow, with underlying capital goods shipments consistent with a sharp slowdown in business equipment investment growth from 15% in the first quarter to something closer to 6% annualised. That is consistent with our view that economic activity is bending rather than breaking under the impact of higher rates.