Dynamic Durables

Orders for durable goods rose a solid 3.1% in February, the biggest gain since 1/17. Better yet, orders for machinery, which slumped in November, December, and January, rose 1.8% in February, the best increase since 9/17 and the highest level of such spending since 2014 when booming energy prices drove investment. The combination of tax cuts, improved business confidence, firming oil prices, and a weaker dollar are doing the trick.