Durables Orders in U.S. Increased More Than Forecast in April

[NJmaverick]

Source: Bloomberg

Orders for durable goods rose in April for the fourth time in five months, pointing to strength in U.S. manufacturing at the start of the second quarter.

The 2.9 percent increase in bookings for goods meant to last at least three years was the biggest in three months and followed little change in March, figures from the Commerce Department showed today in Washington. Orders excluding transportation unexpectedly fell after revisions showed even bigger increases in prior months.

Rising exports and lean inventories are prompting companies to place more orders with factories, keeping factories at the forefront of the recovery from the worst recession since the 1930s. Corporate and consumer demand that stokes more job growth may help the expansion weather the European debt crisis.

“Durable orders in general are holding up pretty solidly,” said Carl Riccadonna, senior U.S. economist at Deutsche Bank Securities Inc. in New York. “That speaks to both consumer and business demand and I think orders are going to hold up for a while longer.”

Read more: http://preview.bloomberg.com/news/2010-05-26/durables-orders-in-u-s-increased-more-than-forecast-in-april.html