Posted on 04/25/2007 6:19:10 AM PDT by libertarianPA
WASHINGTON - Orders to U.S. factories for big-ticket manufactured goods rose in March at the fastest clip in three months, helped by the biggest jump in orders by businesses to expand and modernize in 2 1/2 years.
The Commerce Department reported Wednesday that demand for durable goods rose 3.4 percent last month compared with February. That was significantly better than the 2.5 percent increase that had been expected.
Much of the strength last month came from a 37.6 percent surge in demand for commercial aircraft. However, orders for business capital goods excluding aircraft also posted a strong gain of 4.7 percent.
That was the best showing for this closely watched category of business investment since a 7.9 percent rise in September 2004. The rebound came after two consecutive monthly declines had increased worries that troubles in housing and auto manufacturing were beginning to cause other businesses to grow more pessimistic about the future.
The 3.4 percent rise in total orders pushed demand for durable goods up to $214.9 billion in March following a 2.4 percent increase in February, which was previously reported as a weaker 1.7 percent rise.
Manufacturing has endured a slowdown in recent months, reflecting troubles in the housing industry, which have cut demand for construction equipment, and weakness in autos, where U.S. car makers are struggling to reduce an overhang of unsold cars.
The manufacturing weakness mirrors weakness in the overall economy, where growth has been depressed for the past year.
Many economists believe the economy slowed to an annual growth rate of just 1.8 percent in the first three months of this year, which would be the weakest showing since the end of 2005 when the country was struggling to cope with the devastation from Hurricane Katrina. The government will release its first look at growth in the gross domestic product for the January-March period on Friday.
The strength in aircraft orders pushed overall demand for transportation goods up by 8 percent in March. Orders for new cars and trucks rose by 3.3 percent, the best showing since December, and a sign that automakers are beginning to get control of their inventory levels.
Orders for computers dropped by 4.2 percent last month but demand for communications equipment shot up 12.3 percent and orders for primary metals such as steel were up 2.5 percent, rebounding from a 3.7 percent drop in February.
Bush’s Fault and Were All Doomed!
O.B.B.F.A.W.D.
¿Is today the day we see DOW 13,000?
But what percentage of them were bought with the purchaser’s own money? ;)
Looks like people are spending their tax refunds...
The stock market is moving up.
I've been on this forum for about ten years, and every year the same people come out with their predictions of total collapse of the U.S. economy. If the recovery from 9/11 didn't tell them something, I guess nothing will. We will always have our economic doomists...even on a conservative forum. Even with Willie Green gone.
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