MW Boeing contracts and tariff 'front-running' boosted durable-goods orders. It won't last.

By Jeffry Bartash

Future is cloudy for manufacturers amid trade wars

The numbers: A flush of Boeing contracts and companies seeking to stock up ahead the Trump tariffs sent orders for U.S. durable goods soaring in March, but the strength is unlikely to last as trade wars begin to bite.

Orders for long-lasting goods surged 9.2% last month, the government said Thursday, to mark the biggest advance since last summer.

Demand for aircraft, mainly Boeing passenger planes, jumped 139%. Orders for autos, metals and metal parts also increased as carmakers sought to bring in more supplies before the tariffs kicked in.

If transportation is omitted, orders were flat in a sign that tariffs are already having an effect.

Business investment, meanwhile, rose a scant 0.1% as measured by a category known as "core" orders. These orders tend to hint at the future performance of the U.S. economy - and what they show is not great.

The longer the trade wars drag on, economists say, the more likely the U.S. economy will slow and business investment will decline.

Economists polled by The Wall Street Journal had forecast a 1.6% increase in durable-goods orders in March.

Key details: Orders for new cars and trucks rose 2.3% in March after a 5.1% increase in February, a clear case of automakers trying to beat tariff increases. American car buyers have also been looking to purchase new vehicles ahead of potential price increases.

Orders for metals, metal parts, machinery and networking equipment also rose.

The sluggishness in core orders in the past few months could be a warning sign. These orders give a sense of how much businesses are investing, one of the main pillars of the U.S. economy.

Big picture: Some manufacturers such as steelmakers have welcomed the tariffs and could benefit from less foreign competition.

Yet most companies face higher costs and could suffer from parts shortages if the trade wars persist, especially the thousands of businesses that rely on supplies from China.

Economists predict much slower growth in the U.S. - if not an outright recession - unless the tariffs are reduced or rescinded soon.

Market reaction: The Dow Jones Industrial Average DJIA and S&P 500 SPX were set to open slightly lower in Thursday trades.

-Jeffry Bartash

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April 24, 2025 08:47 ET (12:47 GMT)

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