Zeev's Turnips Patch-No Politics (ZEEV)

[federal reserves]

U.S. April Durables Orders Seen Falling: Bloomberg Survey
May 28 (Bloomberg) -- U.S. orders for durable goods are expected to decline in April because of fewer bookings for aircraft and automobiles, economists said ahead of today's Commerce Department report.

April orders for items made to last at least three years probably slipped 1 percent after a 1.5 percent increase in March, according to the median of 59 economists in a Bloomberg News survey. Excluding transportation, bookings are seen falling 0.4 percent after a 0.9 percent gain.

Manufacturers awaiting a strengthening of consumer and business spending have been wary about expanding production. General Motors Corp. and Ford Motor Co. said they planned to trim North American output this quarter.

``Businesses were still very cautious in April with the Iraq war having just ended and concern over the strength of the recovery, and the focus has been on cutting costs,'' said Lynn Reaser, chief economist at Banc of America Capital Management in St. Louis.

The durable goods report is scheduled for release at 8:30 a.m. Washington time.