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Title: Durables Orders in U.S. Increased More Than Forecast in April
Source:
BBG
URL Source: http://www.bloomberg.com
Published: May 26, 2010
Author: Courtney Schlisserman
Post Date: 2010-05-26 08:41:21 by war
Keywords: None
Views: 1728
Comments: 6
May 26 (Bloomberg) -- Orders for durable goods rose in April for the fourth time in five months, pointing to strength in U.S. manufacturing at the start of the second quarter. The 2.9 percent increase in bookings for goods meant to last at least three years was the biggest in three months and followed little change in March, figures from the Commerce Department showed today in Washington. Orders excluding transportation unexpectedly fell after revisions showed even bigger increases in prior months. Rising exports and lean inventories are prompting companies to place more orders with factories, keeping factories at the forefront of the recovery from the worst recession since the 1930s. Corporate and consumer demand that stokes more job growth may help the expansion weather the European debt crisis. “The recovery in manufacturing still has some room to run,” Tim Quinlan, an economist at Wells Fargo Securities LLC in Charlotte, North Carolina, said before the report. “We’re certainly keeping an eye on developments in Europe but we think the broader global recovery remains intact and that will foster demand for U.S. made goods abroad.” Economists forecast durable goods would rise 1.3 percent after a previously reported 1.2 percent drop in March, according to the median of 77 projections in a Bloomberg News survey. Estimates ranged from a drop of 1 percent to a gain of 6.4 percent. Excluding transportation, orders fell 1 percent after surging a revised 4.8 percent in March, the biggest gain since August 2005. These bookings were forecast to rise 0.5 percent, according to the survey median. The gain in March was previously estimated at 3.7 percent. Aircraft, Communications The advance in total orders last month was paced by a jump in demand for aircraft and gains in communications gear an automobiles. Commercial aircraft orders, which are volatile, climbed 228 percent after dropping 71 percent in March. Boeing Co., the world’s second-biggest commercial-plane maker, said this month it received 34 aircraft orders in April, compared with 43 in March. Deliveries by the company fell to 38, from 43 a month earlier. Industry data often doesn’t correlate for the government statistics on a month-to-month basis. Bookings for non-defense capital goods excluding aircraft, a proxy for future business investment, decreased 2.4 percent in April after jumping 6.5 percent the prior month. Over the past three months, these orders climbed at a 22 percent annual pace, up from 15 percent in March, signaling companies are planning to invest in updating their plants. Shipments Grow Shipments of those items, used in calculating gross domestic product, increased 0.2 percent after increasing 2.3 percent in March. “We had an excellent report last month and this is a volatile report,” Michael Moran, chief economist at Daiwa Capital Markets America Inc. in New York, said before the figures. “The manufacturing sector is improving, it’s contributing importantly to the recovery.” Orders excluding defense equipment increased 3.4 percent and bookings for military gear fell 2.1 percent. Regional reports have shown manufacturing continuing to expand this month. The Federal Reserve Bank of Philadelphia’s general economic index rose in May to a five-month high, while a New York Fed gauge showed manufacturing in the state expanded for a 10th straight month. Debt Crisis Factories now face the risk of slower export growth as the debt crisis threatens Europe’s economy. Stocks have plunged globally as concern grows over the European debt crisis. A stronger dollar along with the potential for slower demand from Europe may be a drag on U.S. export growth. Economists at Goldman Sachs Group Inc. estimated trade will reduce economic growth by 0.1 percent to 0.3 percent, according to a May 21 note to clients. General Electric Co. Chief Executive Officer Jeffrey Immelt said May 24 that Europe’s debt troubles can be fixed and they’re not enough to slow a global economic recovery. “In Europe, I think this is going to be solvable; it’s going to mean slow growth,” for the region, Immelt said after his commencement address at Boston College. “I don’t think it’s enough to slow the recovery, I really don’t.” He also said the U.S. economy is “very good and improving.” Meantime, U.S. companies continue to invest. Ford Motor Co., working to make a quarter of its vehicles run at least partly on electricity, said May 24 it plans to invest $135 million and add 220 jobs at three Michigan facilities to help it introduce five such models by 2012. Rising exports also have been a boon to production. Exports rose in March to the highest level since October 2008, the Commerce Department reported May 12. The biggest jump in consumer spending in three years and a 13 percent rise in business investment in new equipment helped the economy expand for a third straight quarter in the first three months of this year, Commerce Department data showed last month. Manufacturers make up 12 percent of the economy. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ The underlying components are actually a mixed bag, skewed slightly positive...
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#1. To: all (#0)
Who forecast? Seriously, ever wonder who these alleged experts are? Never mention a name in any of these bullshit propaganda pieces.
For approximately 72K, BP Oil bought Owe-bama. And as President, he let them Spill, Baby, Spill! Its documented.
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
Any other questions, Boof?
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
How you feeling today, man?
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
I've got a case of the slows. I need to get moving and forage for lunch. Later...
Economists forecast
#2. To: Badeye (#1)
#3. To: Badeye (#1)
#4. To: Badeye (#1)
(Edited)
#5. To: Fred Mertz (#4)
#6. To: war (#5)
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