The U.S. Census Bureau reported that new orders for manufactured durable goods increased 0.5% to a seasonally adjusted $256.3 billion in March. The increase followed a 0.9% February decrease that was affected by supply chain issues. Aircraft orders sank nearly 50%, on the positive side vehicle orders bounced back up 5.5% in March following bottlenecks in the supply chain related to weather and a computer chip shortage. Core capital goods orders, which exclude the volatile aircraft and defense orders increased 0.9% to $73.2 billion in March and is up 10.4% year over year. Core durable goods shipments increased 1.3% in March and are up 9% year over year. Total durable-goods orders are up 2.4% from a year ago.

The Federal Reserve announced it would continue its easy money policy, keeping its benchmark interest rate near zero as it continues its efforts to bolster a post-pandemic economic recovery. It has been a year since the Fed funds rate was set at 0% to 0.25% down from the previous 1% to 1.25% range. The Fed indicated it won’t change the benchmark interest rate until there is maximum employment, inflation is consistently at 2.0%, and inflation is tracking to exceed 2.0%. The Fed also said it will continue with its asset purchase program, increasing its monthly holdings of Treasury securities by at least $80 Billion and of agency mortgage-backed securities by at least $40 billion.

The U.S. Department of Commerce estimated that gross domestic product (GDP) expanded at a 6.4% annualized rate in Q1, this follows a 4.3% Q4 pace. Fueled by increases in durable goods (led by motor vehicles and parts), nondurable goods (led by food and beverages), and services (led by food services and accommodation) personal consumption expenditures (PCE) surged an annualized 10.7%. The PCE price index excluding food and energy costs rose an annualized 2.3% in Q1 after a 1.3% pace in Q4. Business investment rose at an annualized 9.9%, with equipment and intellectual property leading the way, while housing increased at a 10.8% rate. Government spending jumped at a 6.3% annual rate, a reflection of federal stimulus. On the negative side - net exports of goods and services subtracted 0.87% from the GDP while depleting inventories subtracted 2.64 points.