Durable-goods orders rise for 3rd straight month

[pampango]

Source: Market Watch

Demand for U.S.-made durable goods rose a seasonally adjusted 0.5% to $178.1 billion in February, the third straight increase in the key forward-looking indicator, according to Commerce Department data released Wednesday. Orders for machinery and civilian aircraft were strong in February, while orders for autos, defense goods and electronics declined. Orders for core capital goods excluding aircraft and defense rose 1.1%, a sign of rising capital spending by businesses.

The 0.5% increase in durable goods orders was weaker than the 1.7% gain expected by economists surveyed by MarketWatch. However, January's orders were revised higher, from a 2.6% gain to 3.9%. December's orders were also revised higher. Read our complete economic calendar and consensus forecast.

Durable goods are expensive manufactured goods designed to last three years or longer. Movements in the data are extremely volatile on a monthly basis, but smoothed trends are a leading indicator of economic activity.

The data in the past eight months show the U.S. manufacturing sector is stirring from its steepest recession in 60 years, fueled by stronger demand from abroad and by the need to replenish depleted inventories as U.S. demand improves.



Read more: http://www.marketwatch.com/story/durable-goods-orders-rise-for-3rd-straight-month-2010-03-24-83100

[dmallind]

1. OK the first month was "inventory rebuild" then "tax refunds". Now the doomers will say what?

Rich people are being commercial aircraft with their more complicated and later arriving tax refunds?

[jschurchin]

2. Shit like this is why I don't believe anything they say.

Boeing, the world’s second-biggest commercial-plane maker, said it received 47 orders in February, up from 10 a month earlier. Chicago-based Boeing last week said it will boost production in coming years to meet stronger demand as airlines rebound from the recession-induced travel slump.

Now doing just a little research reveals this from Boeing,

http://active.boeing.com/commercial/orders/index.cfm

Now I am not brilliant, but I can do basic arithmatic. 10 orders in January plus 47 orders in Febuary equals 57 orders for the first 2 months. Oh wait, now I see. The gubermant is counting cancellations as orders also. My bad. And here I thought they were lying to us, but their not, they are just not telling the truth.

[NJmaverick]

3. Ah your problem is you are so set to try and bad mouth the economy

you rushed right past this QUALIFIER in your link "Highlighted text in the chart above indicates updates for the current week." So the cancellations are THIS month and so the figures reported are accurate.

[jschurchin]

4. Your right my bad.

All is well.

[NJmaverick]

5. I appreciate the acknowledgement

thanks

[Frank Cannon]

6. I've come to the conclusion that ANY government report on the economy...

is as reliable as a photo on a dating website.

[rfranklin]

7. LOL Good analogy! But the numbers aren't setting the market on fire...

Here's the way it's described by Marketwatch...data from the Commerce Department showed durable-goods orders rose a third straight month in February, while a sign of capital spending climbed, indicating U.S. businesses have confidence in the economic recovery. Still, the 0.5% increase in manufacturers' orders for goods designed to last at least three years was below the 0.7% increase economists had expected.

If not for the defense sector, orders for durables would have increased much more. Defense-related capital goods orders fell 4.5%. Excluding defense, all other durable-goods orders rose 1.6% in February, after climbing 1.7% during January.

http://www.marketwatch.com/story/us-stocks-open-lower-as-portugal-downgrade-weighs-djia-off-26-2010-03-24

The word "lackluster" was used on their front page to describe the durable goods numbers. Unfortunately, because of our dependence on the massive "defense" industry, a downturn in making weapons hurts the numbers.