New orders for manufactured durable goods in March increased 3.4 percent to $214.9 billion, the U.S. Census Bureau announced in late April. This was the fourth increase in the last five months and followed a 2.4 percent February increase. Meanwhile, recently revised 2006 housing sales figures show that things have generally been worse than originally indicated, and consumer sentiment fell to its lowest in seven months in April.

Excluding defense, new orders increased 4.5 percent, according to the Census Bureau.

Transportation equipment, up four of the last five months, had the largest increase, $4.8 billion or 8 percent to $64.9 billion. This was due to non-defense aircraft and parts, which increased $5.6 billion,” according to the Census Bureau announcement.

Unfilled orders were up 1.8 percent to $717.0 billion, at the highest level since the series was first stated on a NAICS basis in 1992 and followed a 1.1 percent February increase.

Non-defense new orders for capital goods in March increased $8.4 billion or 11.7 percent to $80.2 billion or 11.7 percent to $80.2 billion. In contrast, defense new orders for capital goods in March decreased $1.8 billion or 22.4 percent to $6.3 billion.

The Federal Reserve, in its latest survey of regional economic conditions, last week reported that home sales and construction continued to slow in many parts of the country into early April. In fact, an increase in March new-home sales fell far short of analysts’ expectations of a 4 percent to 8 percent rise. New-home sales in February plunged to the lowest level in nearly seven years.

Nishu Sood, a home building analyst at Deutsche Bank Securities, told The Washington Post that recently revised 2006 housing sales figures show that “things have generally been worse than originally indicated.”

“Economists and Federal Reserve policymakers have been closely monitoring business investment behavior, concerned that if companies cut back spending it could deepen a slowdown in national economic activity that began late last year,” explains Reuters (via The New York Times).

Further, consumer sentiment fell to its lowest in seven months in April on rising gasoline prices and troubles in the housing market, while inflation expectations also rose sharply. Total inflation rose 0.4 percent in March and is up 2.4 percent over the past year, according to the Commerce Department (via MarketWatch).

Yet due to optimism over the recent stock market rally, consumer sentiment was better than first estimated this month and above forecasts, the Reuters/University of Michigan Surveys of Consumers’ final April reading of its consumer sentiment index showed.

The final April reading of its consumer sentiment index slipped from 88.4 March to 87.1. It was the third straight monthly fall in the index. April’s final result was the lowest since 85.4 in September 2006, although it was up from the 85.3 preliminary April reading.

In a week mid-April, however, the stock market showed remarkable gains. Consumer sentiment and the bullish stock market seem contradictory. One can only conclude the sentiment index represents more distant future expectations while a stock market value shows today’s enthusiasm for investment based on earnings or there lack of.

If only we could have a clear idea of the actual quantity of oil reserves and how quickly the U.S. can wean itself from its intractable oil dependency, then the future might be much more predictable.