U.S. Big-Ticket Orders Shoot Higher

Jan. 13, 2005
By Agence France-Presse A long-awaited recovery in U.S. investment may finally have begun, experts said May 23, after orders for big-ticket items shot up 1.1% in April. "It looks like we have the turn in orders for durable goods and therefore in ...
By Agence France-Presse A long-awaited recovery in U.S. investment may finally have begun, experts said May 23, after orders for big-ticket items shot up 1.1% in April. "It looks like we have the turn in orders for durable goods and therefore in investment," said Naroff Economic Advisors chief economist Joel Naroff. "This key component of the economy had been in free-fall for quite a while, but that is no longer the case, as orders rose a solid 1.1%." Excluding volatile orders for aircraft, which slumped a dramatic 37%, orders for U.S. durable goods climbed a "robust" 2.9%, experts noted. "Importantly, the gains were broad based, as almost every sector reported demand had increased," Naroff said. Metals, machinery, electronic and electrical equipment, motor vehicles and even communications equipment posted solid gains, according to figures released by the U.S. Commerce Department. It was the fifth monthly increase in durable goods orders and it followed a rise of 0.2% in March. "Business investment is the sensitive sector of the U.S. economy and the more upbeat news goes far in reinforcing expectations of a recovery," said Societe Generale chief economist Marc Hendriks. Naroff noted that unfilled orders fell 0.5% in April. "For production to truly surge, we need to see order books refilling rapidly and that is not happening," Naroff said. "Thus, while the manufacturing sector is coming back, it still has a way to go before it can be said to be totally out of the woods." Orders for capital goods slumped 3.7% in April. But within that category, orders for non-defense capital goods, often an indication of business plans to expand and modernize, rose 1.9%. Machinery orders rose 4%. Computers and electronic products orders advanced 2.5% -- the biggest increase since October of last year. Defense capital goods orders slumped 33.3% after a sharp rise in March. In the labor market, meanwhile, the number of people filing new claims for U.S. jobless benefits tumbled 9,000 to a seasonally adjusted 416,000 in the week ended May 18, the Labor Department said. The pool of existing claimants, however, surged to a new 19-year high of 3.87 million. "This report is consistent with our forecast for tepid job growth of 50,000 in May and a 6.1% unemployment rate," said Merrill Lynch economist Gerald Cohen. The U.S. unemployment rate hit an eight-year high of 6% in April. Copyright Agence France-Presse, 2002

Popular Sponsored Recommendations

Modern Edge Computing Accelerates Smart Manufacturing Initiatives for Discrete Manufacturers

Oct. 22, 2023
Discover how Edge Computing platforms are a requisite for discrete manufacturers to solve production challenges, accelerate digitalization, and establish a reliable infrastructure...

Beware Extreme Software

Sept. 24, 2023
As a manufacturer, you understand the importance of staying ahead of the curve and being proactive in your approach to technology. With the rapid pace of change in the industry...

Smarter Savings for Manufacturers - Guide

Sept. 11, 2023
Boost your manufacturing sales and revenue while reducing costs. Learn how one platform can help your business be more agile and productive in today's market.

How Digital Twin Technology is Empowering Manufacturers

Sept. 27, 2023
This FAQ delves into why this technology offers business value and considerations toward implementation.

Voice your opinion!

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