By Robert Hughes
New orders for durable goods plunged 17.2 percent in April following a 16.6 percent tumble in March. If transportation equipment is excluded, new orders for durable goods decreased 7.4 percent in April following a 1.7 percent fall in March. Durable-goods orders had been holding above the $200 billion level since March 2011 before posting sharp declines in March and April (see first chart).
New orders for nondefense capital goods excluding aircraft, a proxy for business investment, fell 5.8 percent in April following a drop of 1.1 percent in March. This key category