March 28 (Bloomberg) -- Orders for U.S. durable goods rose in February, the fourth monthly gain in the last five, spurred by demand for cars, computers and capital equipment. Bookings for goods meant to last at least three years advanced 2.2 percent, less than projected after a revised 3.6 percent decline the prior month, data from the Commerce Department showed. Michael McKee and Betty Liu report on Bloomberg Television's "In the Loop." (Source: Bloomberg) Enlarge image U.S. Durable Goods Orders Probably Rebounded on Aircraft An employee works on a Boeing 787 Dreamliner at the company's factory in Everett, Washington. Photographer: Stuart Isett/Bloomberg
Corporate equipment upgrades and consumer purchases of new cars are bolstering production, prompting factories to hire and keeping the industry a source of strength for the expansion. Nonetheless, higher fuel costs and slowdowns in Europe and China may limit the pace of manufacturing this year.
“Business spending will remain a key driver of the U.S. economy, not to the same extent as last year, but still a positive force,” said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto, who accurately forecast the durables figure. “The auto industry looks to be coming back because of stronger demand.”
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