Core Insights - In April, U.S. factory orders for capital goods experienced the largest decline since October of the previous year, indicating a decrease in business investment sentiment amid uncertainties surrounding tariffs and tax policies [1][4] - Core capital goods orders fell by 1.3% month-over-month, while March was revised upward to a growth of 0.3% [1] - Durable goods orders overall decreased by 6.3%, primarily due to a reduction in commercial aircraft orders [4] Group 1: Capital Goods Orders - Core capital goods shipments, excluding defense and aircraft, saw a decline of 0.1%, marking the first decrease since October of the previous year [1] - The report highlights a cautious approach among businesses in assessing demand prospects, influenced by President Trump's trade policies and ongoing discussions in Congress regarding tax legislation [4] Group 2: Durable Goods and Economic Impact - Durable goods orders fell by 6.3%, which was better than the estimated decline of 7.8% [5] - Capital goods orders, excluding defense and aircraft, decreased by 1.3%, compared to an expected decline of 0.2% [5] - The Atlanta Fed's GDPNow forecast indicates that business equipment spending will contribute nearly 0.4 percentage points to U.S. economic growth in the second quarter [5] Group 3: Aircraft Orders - Commercial aircraft bookings saw a significant drop of 51.5% in April, with Boeing reporting only 8 orders, the lowest since May 2024 [6] - The previous month, March, had a much higher order count of 192, which was the highest since 2023 [6]