Durable Goods Order/Claims

• Durables goods orders +1.9% headline; -1.5% ex-aircraft and defense (this is the measure used for the private sector capex component of GDP)
• Defense up 23.2% m/m; here are the prior 3mths for defense orders in 2009 (-11%;+33%;-40%)
• Shipments ex-defense -0.3%
• Inventories -0.8% (unexpected as most felt inventory drawdown was over in Q1)
• Initial claims fall to 623k from 636k (revised up from 631k)
• Continuing claims up another 110k
• Data shows economy still contracting; look for range of estimates for Q2 from -2% to -4%