New orders for big-ticket US manufactured goods rose unexpectedly in April, government data showed Wednesday, underscoring recovery in the manufacturing sector.
Wednesday, May 26, 2010
By: AFP writers
WASHINGTON, May 26, 2010 (AFP) - New orders for big-ticket US manufactured goods rose unexpectedly in April, government data showed Wednesday, underscoring recovery in the manufacturing sector.
New orders for manufactured durable goods -- items such as planes, cars, refrigerators and computers that could last at least three years -- increased 2.9 percent to 193.9 billion dollars, the Commerce Department said in a report.
This was the fourth increase in the last five months and followed a revised flat reading in March. Most economists had expected a 1.5 percent rise in April.
Durable goods orders excluding transportation, considered the most volatile component in the data, decreased 1.0 percent -- well below expectations of a 0.7 percent increase.
Transportation equipment, up following two consecutive monthly decreases, had the largest gain, 16.1 percent to 50.7 billion dollars -- due to an increase in non-defense aircraft and parts' orders.
Durable goods order trends have been extremely positive since late 2009.
"That reflected a revival in consumer demand and lofty expectations for continued consumption growth," analysts at Briefing.com said in a report.
"While bank credit remains tight, large firms have been able to take advantage of low yields by issuing their own debt for capital purchases," they said.
The US economy has been posting moderate growth since the middle of last year after plunging into a brutal recession in December 2007.
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