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Friday, March 24, 2006 4:32:20 PM
Durable goods orders weak, except for aircraft
3/24/2006 11:55 AM
WASHINGTON (AP) — Orders to factories for durable manufactured goods rose in February by the largest amount in three months, propelled by soaring demand for civilian aircraft.
Excluding transportation, durable goods orders fell 1.3% last month, weakest showing since July.
The Commerce Department said durable goods orders overall increased 2.6% last month, double the gain economists expected. But the strength was concentrated in a 52.5% increase in orders for commercial aircraft, reflecting a rebound after a 70.1% drop in January.
"The durables ex-transportation was a pretty lousy number," said John Beerling, regional foreign exchange trading desk manager at Wells Fargo in Minneapolis.
In transportation, all the strength came from commercial aircraft orders. While total transportation orders rose by 13.4%, that reflected the 52.5% rise in civilian aircraft. Demand for military aircraft fell 16.7%.
Orders for motor vehicles dropped 3.3% in February after a 3.2% decline in January. American automakers have been struggling with increased foreign competition and sagging demand for sport-utility vehicles in the face of rising gasoline prices.
The 2.6% increase in overall orders was the biggest gain since a 5.3% rise last November. It left total orders at $215.8 billion last month, an increase of $4.99 billion.
Durables orders excluding defense items rose just 0.3%, short of the 0.8% increase expected by economists. Orders for defense capital goods surged 104.1%, the largest increase in four years.
Weakness was widespread outside of civilian aircraft and defense. Primary metals orders fell 2.5%, fabricated metals dropped 1.9%, machinery orders plunged 6.3% and electrical equipment and appliance orders fell 3.2%. Orders for motor vehicles fell 3.3%.
Orders for computers and electronic products were a bright spot, rising 4.2%. Computer orders alone rose 4.8%.
Orders for non-defense capital goods excluding aircraft, a proxy for business spending, fell 2.3% after a scant 0.3% rise in January. Wall Street analysts had expected a 1.0% increase.
http://www.usatoday.com/money/economy/production/2006-03-24-durable_x.htm?csp=34
3/24/2006 11:55 AM
WASHINGTON (AP) — Orders to factories for durable manufactured goods rose in February by the largest amount in three months, propelled by soaring demand for civilian aircraft.
Excluding transportation, durable goods orders fell 1.3% last month, weakest showing since July.
The Commerce Department said durable goods orders overall increased 2.6% last month, double the gain economists expected. But the strength was concentrated in a 52.5% increase in orders for commercial aircraft, reflecting a rebound after a 70.1% drop in January.
"The durables ex-transportation was a pretty lousy number," said John Beerling, regional foreign exchange trading desk manager at Wells Fargo in Minneapolis.
In transportation, all the strength came from commercial aircraft orders. While total transportation orders rose by 13.4%, that reflected the 52.5% rise in civilian aircraft. Demand for military aircraft fell 16.7%.
Orders for motor vehicles dropped 3.3% in February after a 3.2% decline in January. American automakers have been struggling with increased foreign competition and sagging demand for sport-utility vehicles in the face of rising gasoline prices.
The 2.6% increase in overall orders was the biggest gain since a 5.3% rise last November. It left total orders at $215.8 billion last month, an increase of $4.99 billion.
Durables orders excluding defense items rose just 0.3%, short of the 0.8% increase expected by economists. Orders for defense capital goods surged 104.1%, the largest increase in four years.
Weakness was widespread outside of civilian aircraft and defense. Primary metals orders fell 2.5%, fabricated metals dropped 1.9%, machinery orders plunged 6.3% and electrical equipment and appliance orders fell 3.2%. Orders for motor vehicles fell 3.3%.
Orders for computers and electronic products were a bright spot, rising 4.2%. Computer orders alone rose 4.8%.
Orders for non-defense capital goods excluding aircraft, a proxy for business spending, fell 2.3% after a scant 0.3% rise in January. Wall Street analysts had expected a 1.0% increase.
http://www.usatoday.com/money/economy/production/2006-03-24-durable_x.htm?csp=34
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