Durable Goods, New Home Sales Better Than Expected

[Purveyor]

Source: Associated Press

WASHINGTON (AP) — Demand for big-ticket manufactured goods and new home sales both were better than expected in March, raising some hopes that the long slides in manufacturing and housing are slowly coming to an end.

The Commerce Department said Friday that orders for durable goods dropped 0.8 percent last month, about half the 1.5 percent decline that economists expected. A rise in orders for commercial and military aircraft helped cushion weakness elsewhere.

The small drop followed a 2.1 percent increase in orders in February. That was the first gain after six straight monthly declines.

New home sales fell 0.6 percent last month to a seasonally adjusted annual rate of 356,000 from an upwardly revised February rate of 358,000, the department said. Economists surveyed by Thomson Reuters expected a sales pace of 340,000 units.

February's results were 6 percent higher than originally reported, but home sales last month were down nearly 31 percent from March 2008.

The housing results fanned optimism that developers have slashed prices and construction enough that sales have finally hit bottom. Prices, however, are likely to remain weak for months as builders continue to clear out their stock of unsold homes.

Read more: http://www.google.com/hostednews/ap/article/ALeqM5gNiyJ905Ho0Ur96V2TQhsBX19lGwD97OSR480

[notadmblnd]

1. You have to remember, it's tax time and people are spending their refunds

let's see if the reports remain optimistic in the coming months.

[Lucky Luciano]

4. The numbers are compared to the same time last year, so

tax refunds cannot be considered the reason for the blip since presumably there were tax refunds last year too!

[Dr.Phool]

2. Also remember.

The numbers still sucked.

Lower expectations, and when they aren't that bad, say "WOW"!!!!

[DLnyc]

3. A chart, for perspective, from a year ago:

http://seekingalpha.com/article/79103-historical-new-home-sales-chart

[Name removed]

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[robcon]

6. Good news.

It just needs to continue. Who knows what's going to happen?