Orders increased 2.1 percent following seven monthly
declines, the Commerce Department reported Monday. And in further good news,
orders in a key category that tracks business investment plans eked out a 0.1
percent rise. It was the first advance in this category since last August.
Economists are hoping that U.S. manufacturing is beginning
to emerge from a long soft patch, bolstered by stronger domestic demand that
will offset ongoing weakness in exports. Orders for durable goods, which are
items expected to last at least three years, rose 4.4 percent in March. Demand
for nondurable goods such as chemicals and paper dropped 0.3 percent.
U.S. factories have been struggling with export sales, which
have taken a hit from the rise in the value of the dollar in recent months. A
stronger dollar makes U.S. exports more expensive and less competitive on
overseas markets. It also lowers the cost of imported goods, making them more
attractive to U.S. consumers.
The overall increase was the first positive number since a
10.5 percent increase last July. The strength in March was led by a surge in
demand for computers and the volatile category of commercial aircraft. The key
category of non-defense capital goods excluding aircraft, which is viewed as a
proxy for business investment plans, edged up 0.1 percent in March. It was the
first advance in this area since last August.
The government reported last week that the overall economy,
as measured by the gross domestic product, expanded by a meager 0.2 percent in
the January-March quarter as a harsh winter, a rising trade deficit and weaker
business investment all held back growth.
Economists believe growth will rebound in the April-June
quarter, helped by stronger job growth that is expected to spur consumer
spending. Auto sales rose in April, led by strong demand for small and midsize
SUVs. Economists at Macroeconomic Advisors are looking for the GDP, the
country's total output of goods and services, to grow at a 1.9 percent rate in
the second quarter, a significant rebound from the first three months.
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