The February Durable Goods report was worse than expected. Durable goods ex-transportation fell 1% MoM and 0.5% YoY while January’s data* was mostly revised lower. Nondefense capital goods orders ex-aircraft continues to show weak demand. Fabricated metal products and machinery both slipped noticeably. The data in the report is somewhat of a contradiction at this point as we have seen a strong rebound across the board in the commodities. Further, we have seen much improvement in this month’s regional manufacturing reports. Regardless, the one consistency in the durable goods report is the month-to-month inconsistency.