CNN-Durables orders disappoint & AP: Factories:See BigTicket Orders Climb

[papau]

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

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.

<snip>

[Ripley]

1. Oops, someone got the wrong memo...

I notice this all the time on LBN. One headline will say "Generals worry over recruitment goals not being met" then about 5 lines down I see "General So-and-So says Recruitment up due to new Patriotism Campaign"

They are trying to keep us confused and anxious...it helps with the in-fighting you see.

[papau]

4. Oops was my guess - CNN has UE increase low and great -to make up for

the bad error!

:-)

[wildmanj]

2. none

old business news already posted in stock market watch for today

[Barkley]

3. Durables are often the first thing to go in a recession

Since durables like TVs can be repaired instead of replaced with new purchases.

[Up2Late]

5. Dollar Slips on Soft Durable Goods Number

Thu Mar 24, 2005 8:58 AM ET

NEW YORK (Reuters) - The dollar slipped modestly on Thursday after a softer-than-expected U.S. durable goods report, although the prior month's reading was revised up.

Durable goods orders for February rose 0.3 percent, below economists' forecasts for a rise of 1.0 percent. January's reading was a fall of 1.1 percent, revised from an initially reported decline of 1.3 percent. Initial jobless claims rose to 324,000 for the latest week, above economists' forecasts for 315,000.

"The numbers were very bad for durables, but mitigated by the fact that the prior number was revised up. So the dollar is not reacting as poorly as might initially have been expected," said T.J. Marta, senior currency strategist with RBC Capital Markets in New York. "The uptrend is clearly in place for jobless claims," indicating a softer-than-expected-U.S. labor market, Marta added.

The euro rose steadily to $1,3005, up from around $1.2977 shortly before the reports, and up 0.1 percent from its levels late on Wednesday.

(more at link)

<http://today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2005-03-24T135806Z_01_N24559380_RTRIDST_0_BUSINESS-MARKETS-FOREX-DC.XML>

[tanyev]

6. "slipped modestly"

That's a very non-threatening way to phrase it. So soothing.