American consumers are still spending on big-ticket goods, according to April factory orders data released Wednesday by the Census Bureau, with orders for consumer durable goods running 8.5 percent above last year’s pace and motor vehicle demand surging.
Consumer durable goods orders — the manufactured products households buy for long-term use — totaled $200.6 billion through the first four months of 2026, compared to $185.0 billion in the same period of 2025. On a year-over-year basis for April alone, consumer durables orders were up 11.0 percent, the Census Bureau’s data show.
The data suggest that consumers have not pulled back despite high gas prices, resurgent inflation, and stubbornly high interest rates. One possible reason: consumer durable goods have seen less price pressure. Through April, prices durable goods purchased by households were down one-tenth of a percentage point, according to the Labor Department’s consumer price index.
Motor vehicles led the way. The Census Bureau’s motor vehicles and parts series — which captures orders for the cars, trucks, and SUVs that American consumers and businesses are buying — ran 9.7 percent above last year’s pace year-to-date and 12.6 percent above April 2025 levels on a year-over-year basis. Orders for motor vehicle bodies, parts, and trailers in the manufacturing data were up 7.8 percent year-to-date and 10.1 percent year-over-year for April.
More impressive, nearly all of this increase is real. Prices for new vehicles are up just 0.2 percent from a year ago, with new car prices up 0.7 percent and new truck prices up just 0.1 percent, according to the CPI.
Consumer goods orders broadly — durables and nondurables combined — were 4.0 percent above last year through April, and ran 8.9 percent above April 2025 on a year-over-year basis.
Household appliances presented a mixed picture. Orders for the category are down 2.4 percent year-to-date compared with the first four months of 2025, reflecting weakness in February and March. But the category bounced back 2.8 percent in April on a seasonally adjusted basis, a sign that demand may be stabilizing after a soft stretch. Compared with a year ago, appliance prices are up just 0.2 percent.
Furniture orders were essentially flat, up just 0.8 percent year-to-date, and prices are up 1.3 percent. Consumer nondurable goods orders were up 3.0 percent year-to-date while prices rose 6.6 percent, largely due to increase gasoline prices.
Taken together, the data paint a picture of an American consumer who remains willing to commit to large purchases. The durables numbers in particular — heavily weighted toward vehicles but broadly positive — suggest household finances are holding up despite the extended period of elevated interest rates and recently surging gasoline prices.
Read the full article here