Posted on 04/26/2006 8:13:28 AM PDT by Grampa Dave
ECONOMIC REPORT Durable goods orders soar 6.1% in March
Aircraft orders up 71%; demand strong across the board By Rex Nutting, MarketWatch
WASHINGTON (MarketWatch) -- Orders for new U.S.-made durable goods increased 6.1% in March, led by strong demand for airplanes, machinery and electronics, the Commerce Department said Wednesday.
The increase in new orders was the largest since May 2005 and far exceeded the 2.1% gain expected by economists surveyed by MarketWatch. See Economic Calendar.
The stronger-than-expected report helped send bond prices falling again, with yields rising to the highest level in four years. See Bond Report.
Orders rose an upwardly revised 3.4% in February. Orders are up 12.2% year-to-date and have increased in five of the past six months.
The big story in March was continued strength in orders for civilian aircraft, which increased 71% in March after a 60% gain in February. Orders for airplanes are up 130% year-to-date, reflecting strong export sales by Boeing (BABoeing Co.
Excluding the 14% rise in transportation goods, new orders rose 2.8% in March, the biggest gain since August.
Outside of aircraft, the order book was still strong. Orders for core capital equipment goods - the best indication of business investment plans - increased 3% in March after falling 0.8% in February. Core capital goods shipments increased 1.6%.
While new orders were up sharply in the past two months, shipments of durable goods rose a more modest 0.3% in March after a 0.4% gain in February. Shipments are up 8.2% year-to-date.
Unfilled orders - a sign of future production - increased 2.8% after rising 1% in February.
Inventories rose 0.7% in March after falling 0.4% in February.
The report adds to the evidence that the economy grew robustly in the first quarter. The Commerce Department will report on first-quarter growth figures on Friday. Economists expect gross domestic product increased at a 4.8% annual pace after growing just 1.7% in the fourth quarter.
Federal Reserve chief Ben Bernanke will testify on Thursday about the state of the economy. He's expected to highlight figures such as the strong durable goods report as evidence for the economy's strength, while warning of budding inflationary pressures and the possible drag from energy prices and a fading housing market. See our complete Fed coverage.
"The factory sector is quite strong going into the second quarter," said Marisa DiNatale, an economist for Moody's Economy.com. "Production and capacity measures remain elevated."
The Fed has expressed concerns that the U.S. economy is running out of spare capacity in labor and productive capacity, which could lead to inflationary pressures and bottlenecks.
In March, orders for transportation goods increased 14%, including the 71% gain in aircraft. Orders for motor vehicles rose 2.8%. Shipments of transportation goods rose 0.8%.
Orders for computers and electronics (excluding semiconductors) rose 7.5%. Shipments fell 3.3%. Orders for machinery rose 7.5% after falling 7.7% in February. Shipments rose 3.2%.
Orders for fabricated metal products increased 1.3%. Shipments rose 0.5%.
Orders for primary metals increased 1.1%. Shipments rose 0.5%.
Orders for electrical equipment fell 1.8%. Shipments rose 1.7%.
Orders for defense capital goods increased 12.6%. Shipments rose 2.7%. Excluding defense goods, new orders rose 6%.
Rex Nutting is Washington bureau chief of MarketWatch.
It is time to fire Rummy, hand Karl Rove and impeach GW for inflicting the worse economy on America since the last ice age.
More sad news about the worst economy since the Ice Age or at least since Eve gave Adam a bite of her apple.
Bush's FAULT!
LOL
Boy you sure are a bearer of bad news today! How about some happy news, like something from Kennedy or Clinton wanting to impeach Bush for going to "war" without Congress' approval? Or how about how Halliburton is laying pipeline from East Afghanistan to Crawford, Texas? Come'on Dave! Get with the program! You know Bush can't take credit for this "successful" economy! (pinging the "anti-Bush economy" troll)
my head hurts trying to think like a liberal. How do they do it?
KEEP THE GOOD NEWS FLOWING!!!!!!!!!!1
Don't forget about doing nothing about the borders... We should impeach him for that... /s
"My head hurts trying to think like a liberal. How do they do it?"
They are miserable whining you know whats. They are so negative on life, they look miserable, act miserable and are miserable.
"Bush's FAULT!"
Fire Rummy! Hang Karl Rove! Impeach GW and put his dogs to sleep. (How am I doing re sounding like a liberal or a whining whacko pretending to be a conservative)?
Bush should be impeached for just being a Bush! (Hey I, can start writing for Lunatic Whackos Who Hate Bush, if I keep this up!)
I wonder if Bella Pelosi is going to harp on about the economy being ALL Bush's fault, now? ;o)
A whole lot of hamburger-flipping going on here.
http://www.freerepublic.com/focus/f-news/1620997/posts?page=4#4
When all else fails, it's all lies, a conspiracy to keep the truth away from the public.
There's one statement in this report I have doubts about- a sagging housing market. Hurricane season is just around the corner. It also doesn't mention the reversal of a major oil pipeline, which once delivered gas/oil to central USA, now carries crude all the way from Alberta to Texas, which should help bolster supply. Also a major tar sand project is near completion which will also lessen demand for mideast oil.
"KEEP THE GOOD NEWS FLOWING!!!!!!!!!!1"
It is not easy with shrub Bush out there destroying America everyday. Or is that King Bush or Jorge Bush? I can never keep my Bush Bashing mantras straight. I keep wanting to mix my mantras and metaphors re the evil and stupid Bush.
It's a plot by Global Corporate Socialists to lull us to sleep.
Bella Pelosi has to keep saying that for her rich gay voters in Frisco and Marin county as they drive their new BMWs to their $400 Dinners for two.
"It's a plot by Global Corporate Socialists to lull us to sleep."
Sssh. Don't let anybody know that we are really Global Corporate Socialists?
Thanks for the ping to that great London Times oped about how strong our economy is. I wonder when the NY Slimes, LA Slimes and the Washington Compost will agree with that oped.
I missed pinging you on your favorite subject, the killing of al Qaeda bastard sons of Islamofascist pigs.
With the recent tapes it appears that al Qaeda in an effort to keep some of its dwindling leadership alive might be leaving Iraq and going to the Sudan, Egypt and other areas where our warriors are not waiting to kill them.
Thanks for this post.
More good news.
The economy is growing, people have jobs and homes, and America is producing again.
What is not to like !
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