Durable-Goods Orders, New Home Sales Signal Continuing Recovery

Jan. 13, 2005
By John S. McClenahen The latest data on orders for manufactured durable goods -- the stuff that lasts a relatively long time -- and sales of new homes suggest the U.S. recovery from recession may be a bit stronger than the most recent Conference Board ...
ByJohn S. McClenahen The latest data on orders for manufactured durable goods -- the stuff that lasts a relatively long time -- and sales of new homes suggest the U.S. recovery from recession may be a bit stronger than the most recent Conference Board Consumer Confidence Index implies. That closely watched index fell nearly four percentage points in June. Excluding semiconductors, new orders for durables rose 0.6% in May to $173.2 billion, reports the U.S. Commerce Department's Bureau of the Census. That figure was right in line with most economists' expectations and significantly better than April's 0.4% advance. "The durable-goods report confirms that the manufacturing sector continues on a recovery track," says Daniel J. Meckstroth, chief economist at Manufacturers Alliance/MAPI, an Arlington, Va.-based business research group. "The materials industries -- metals and metal products -- have recently experienced relatively strong growth in new orders, as have the high-tech computer and related products industry," he notes. What's more, Meckstroth expects inventory liquidation among manufacturers to end soon, and "that will further boost business activity this summer," he says. Meanwhile, sales of new single-family homes in May were at a seasonally adjusted rate of 1.028 million, reveals a report jointly released by the Census Bureau and the U.S. Department of Housing and Urban Development. The May mark was 8.1% higher than the revised April rate of 951,000 and 11.7% higher than the consensus forecast of 920,000 for May. The median sales price for new homes sold in May was $170,200; the average sales price was $224,300. At month's end, an estimated 324,000 homes remained for sale, a 3.8 month supply at the current sales rate.

Popular Sponsored Recommendations

3D Printing a More Efficient Factory Floor

Nov. 16, 2023
Today’s additive manufacturing platforms make it simple to print a wide range of high-performing industrial parts as soon as possible and right where you need them — unlocking...

State of Sales Report

Sept. 12, 2023
Discover the latest insights driving productivity and efficiency for more than 7,700 sales leaders and professionals.

Discover How an Eye Tracking Study Improves Training Procedures

Oct. 29, 2023
Did you know that your training processes can be streamlined by visualizing and analyzing key skills within your employee base? Find out how we use eye tracking to capture advanced...

The Ultimate Ecommerce Excellence Checklist

Oct. 2, 2023
Scaling ecommerce operations is no easy task when your business is moving fast. Assess your current ecommerce maturity level and set optimization priorities with this practical...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!