Machinery demand bolsters factory orders
Factory orders rose in February, bolstered by strong demand for industrial machinery and commercial aircraft. It was the 10th increase in 11 months as manufacturing continues to provide crucial support for the nation’s economic recovery.
Manufacturing companies, which were hit hard by the recession, are benefiting from overseas orders and increased business spending on capital equipment. Quinlan estimates factory orders fell by about 25 percent during the recession but have recovered about one-third of that amount since last spring.
The Commerce Department said Wednesday that new orders rose 0.6 percent last month, just ahead of analysts’ estimates for a 0.5 percent increase, according to Thomson Reuters.
Still, that was the lowest uptick since August 2009. January’s orders also were revised higher to show an increase of 2.5 percent.
Separately, a private company’s report on payrolls Wednesday disappointed analysts. Payroll provider ADP said employers cut 23,000 jobs in March, well below economists’ forecasts for a 40,000 gain.
In the factory orders report, economists were encouraged by a 2 percent rise in orders for capital goods such as computers and machinery following a sharp drop in January. In addition, inventories rose by 0.5 percent last month, the fourth increase in the past five months.