Durables orders disappoint-aircraft orders can't offset weak demand

http://money.cnn.com/2005/03/24/news/economy/durables.reut/index.htm

Durables orders disappoint

Increase in February below expectations; aircraft orders can't offset weak demand for other goods.
March 24, 2005: 8:33 AM EST

WASHINGTON (Reuters) - New orders for long-lasting U.S.-made goods edged up an unexpectedly weak 0.3 percent in February as declining demand for a broad array of items was offset by strong aircraft orders, the government said Thursday.

Excluding the volatile transportation category, orders for durable goods -- pricey manufactured items meant to last three years or more -- slipped 0.2 percent, the Commerce Department said.

The report offered a disappointing signal on the factory sector and business spending plans. Wall Street economists had expected durable goods orders to climb 1 percent overall and 0.5 percent excluding transportation. <snip>

The report suggested businesses curtailed spending plans last month as orders for non-defense capital goods, excluding aircraft, fell 2.1 percent after a healthy 4.4 percent January gain.

Demand for machinery dropped 1.1 percent, orders for fabricated metal products declined 1 percent and communications equipment orders slid 1.2 percent. <snip>

http://story.news.yahoo.com/news?tmpl=story&ncid=716&e=9&u=/ap/20050324/ap_on_bi_go_ec_fi/economy

Factories See Big-Ticket Orders Climb

14 minutes ago

By JEANNINE AVERSA, AP Economics Writer

WASHINGTON - America's factories saw orders for big-ticket goods rise by 0.3 percent in February after falling sharply the month before. The report highlighted the sometimes uneven recovery experienced by manufacturers.


The increase in February pushed up the total value of new bookings for durable goods — costly manufactured products expected to last at least three years — to $200.8 billion. The rise in orders came after a 1.1 percent drop in January, the Commerce Department (news - web sites) reported Thursday.


While most of January's decline reflected weakness in demand for commercial airplanes, most of February's pickup came from a big bounceback in new orders for commercial aircraft and parts. Demand for other types of manufactured goods last month was somewhat sluggish.


Excluding orders for transportation equipment, which can swing widely from month to month, durable-goods orders actually dipped by 0.2 percent in February, the first decline since November.


The 0.3 percent rise in overall orders for big-ticket goods in February was weaker than some analysts were expecting. They were forecasting a 0.8 percent rise.


A decline in orders for communications equipment, automobiles, electrical equipment, machinery and fabricated metal products restrained February's performance. Orders for commercial aircraft, military aircraft, computers and primary metals, a category that includes steel, all showed gains in February.