New orders for US factory goods
in March recorded their biggest decline in three years as demand for
transportation equipment and a range of other goods slumped, government
data showed on Wednesday.
The Commerce Department said orders for manufactured goods dropped 1.5 per cent after a revised 1.1 per cent rise in February.
Economists had forecast orders falling 1.6 per cent after a previously reported 1.3 per cent increase in February.
While the report showed broad weakness in March in a sector that has carried the economic recovery, anecdotal evidence suggests factories continued to expand as the second quarter started.
The Institute for Supply Management's index of national manufacturing activity climbed to a 10-month high in April, with a measure of new orders received by factories the highest in a year, data showed on Tuesday.
The Commerce Department report showed orders for transportation equipment tumbled 12.6 per cent in March on weak orders for civilian aircraft. Orders for motor vehicles and parts was flat in March after rising 1 per cent in February.
Auto sales surged early in the year reflecting pent-up demand from households after a devastating earthquake and tsunami in Japan caused disruptions to auto production in 2011 and left dealers without models that consumers wanted to buy.
Industry data on Tuesday showed motor vehicle sales increased at an annual rate of 14.4 million units in April after rising at a 14.3 million unit pace in March, suggesting fundamental strength in the sector.
Read more: http://economictimes.indiatimes.com/news/international-business/us-factory-orders-suffer-largest-drop-in-3-years/articleshow/12967516.cms
The Commerce Department said orders for manufactured goods dropped 1.5 per cent after a revised 1.1 per cent rise in February.
Economists had forecast orders falling 1.6 per cent after a previously reported 1.3 per cent increase in February.
While the report showed broad weakness in March in a sector that has carried the economic recovery, anecdotal evidence suggests factories continued to expand as the second quarter started.
The Institute for Supply Management's index of national manufacturing activity climbed to a 10-month high in April, with a measure of new orders received by factories the highest in a year, data showed on Tuesday.
The Commerce Department report showed orders for transportation equipment tumbled 12.6 per cent in March on weak orders for civilian aircraft. Orders for motor vehicles and parts was flat in March after rising 1 per cent in February.
Auto sales surged early in the year reflecting pent-up demand from households after a devastating earthquake and tsunami in Japan caused disruptions to auto production in 2011 and left dealers without models that consumers wanted to buy.
Industry data on Tuesday showed motor vehicle sales increased at an annual rate of 14.4 million units in April after rising at a 14.3 million unit pace in March, suggesting fundamental strength in the sector.
Read more: http://economictimes.indiatimes.com/news/international-business/us-factory-orders-suffer-largest-drop-in-3-years/articleshow/12967516.cms
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