Durable Goods Surge Driven by Tariff Fears

U.S. durable goods orders jumped 9.2% in March 2025, the sharpest monthly rise since July 2024 and well above expectations. The increase was fueled by a 27% rise in transportation equipment orders, notably a 139% surge in commercial aircraft purchases, as companies moved to secure orders before new tariffs announced by President Trump took effect. Excluding transportation, orders were flat, highlighting tepid demand outside the sector. Economists attribute much of the headline gain to businesses 'front-running' tariffs rather than underlying economic strength. Reports also indicate weaker performance in core areas like computers and machinery. While the data shows strong growth for the month, underlying economic momentum remains mixed.