Surging capital goods orders and housing starts in March suggest the U.S. economy strengthened meaningfully in the first quarter. Durable goods orders jumped 0.8% in March following a 1.2% decline the prior month, topping expectations. But the highlight was a 3.3% spike (the largest in nearly six years) in nondefence capital goods orders excluding aircraft after an upwardly-revised 1.6% leap the prior month. The increase was broadly based though led by computers and electronic products (3.7%). Nondefence shipments of capital goods (including aircraft) rose a more moderate 0.5% after a modest decline in February, but ... (full story)