Durable-goods orders rise for 3rd straight month [View All]

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