At last week’s FOMC meeting the committee allowed for a weak start to the year by lowering its overall 2014 GDP estimate to 2.1%, which assumes a stronger rebound for the rest of the year than is implied by the latest durable goods report.
Gross domestic product fell at a 2.9% annualized rate, more than forecast and the worst reading since the same three months in 2009, after a previously reported 1 percent drop, the Commerce Department said today.
Orders for longer-lasting durable goods were expected to soften by 0.7% following the earlier March rebound. However, orders were surprisingly stronger gaining by 0.8% with gains coming from computers and fabricated metals.
U.S. stock index futures pared a gain of 8-points following the release of a disappointing durable goods report. New orders for longer-lasting goods slumped at year-end by 4.3% leaving estimates of a rise wanting.