Bloomberg Businessweek (05/24/13) Alex Kowalski
Orders for U.S. durable goods rose higher than expected in April, suggesting the manufacturing sector will do well in the second half of the year. Orders for equipment intended to last at least three years rose 3.3% last month following a decline of 5.9% in March, according to the U.S. Department of Commerce. The median forecast from economists surveyed by Bloomberg projected a 1.5% increase. Ongoing improvements in the housing and auto sectors may affect manufacturing, helping to shore up the economy this quarter. That said, government spending cuts, higher consumer taxes, and cooling exports are curbing demand.
“This report is consistent with the economy continuing to recover, but just at a moderate pace,” says Scott Brown, chief economist at Raymond James & Associates Inc. in St. Petersburg, FL. “We’re not getting much demand from the rest of the world, but we are getting growth domestically.”