US durable goods orders surpass prospects, indicating economic resilience
Date
3/27/2024 2:36:14 AM
(MENAFN) In February, U.S. durable goods orders surged beyond analysts' expectations, offering a promising outlook for the economy's trajectory in the first quarter. Encouragingly, business expenditures on equipment displayed early signs of resurgence, signaling a potential rebound in manufacturing activity. These developments come against the backdrop of a growing sense of optimism regarding the country's economic prospects, as reflected in the findings of a recent survey conducted by the Conference Board.
The survey revealed a notable shift in public sentiment, with Americans expressing heightened concerns about the trajectory of political affairs. However, there was a simultaneous decrease in apprehensions regarding the possibility of a recession within the next twelve months, underscoring a sense of confidence in the economy's resilience.
Offsetting the substantial declines witnessed in January, the rebound in durable goods orders provided a much-needed boost to the manufacturing sector. The recent challenges faced by manufacturers, exacerbated by significant interest rate hikes by the Federal Reserve, appear to be gradually easing as the sector finds its footing.
According to data released by the Commerce Department's Census Bureau, orders for durable goods, spanning a wide range of products from household appliances to aircraft, experienced a 1.4 percent increase last month. This growth trajectory follows a downward revision for January, which revealed a steeper decline of 6.9 percent compared to the previously reported 6.2 percent.
Analysts, surveyed prior to the release of the data, had anticipated a more modest increase of 1.1 percent in durable goods orders. However, the actual rise of 1.4 percent in February surpassed these expectations, suggesting a more robust demand for long-lasting manufactured goods.
A breakdown of the data highlights a notable recovery in transportation orders, which surged by 3.3 percent in February after enduring a substantial 18.3 percent drop in January. Additionally, orders for automobiles and automotive parts accelerated by 1.8 percent, contributing to the overall uptick in demand.
Further underscoring the broad-based nature of the recovery, orders for primary metals rose by 1.4 percent, while those for manufactured metals increased by 0.8 percent. Machinery orders also posted a solid gain, climbing by 1.9 percent during the period, signaling renewed confidence in investment and production activities within the manufacturing sector.
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