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Economic Watch: Factory Orders Increases Most in 8 Months

New orders and shipments of factory made goods turned around in March, according to a new Commerce Department Report released Monday.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
May 4, 2015
Economic Watch: Factory Orders Increases Most in 8 Months

Photo: Evan Lockridge

2 min to read


New orders and shipments of factory made goods turned around in March, according to a new Commerce Department Report released Monday.

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The 2.1% increase in new orders for manufactured goods from the month before is the largest increase in eight months, followed a revised 0.1% February drop that was the seventh monthly decline in a row.

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Shipments of factory made goods increased for the second consecutive month in March, increasing 0.5% following a February gain of 0.4%.

New orders for manufactured durable goods in March increased 4.4%, up more than the first reported 4% increase, and following a 1.4% drop in February. It was led by transportation equipment, jumping 13.5% in March.

Shipments of manufactured durable goods increased 1.2% compared to an advance report that showed a 1.1% gain for March. It also was driven by the transportation sector,  increasing 4.6% from the month before.

Inventories of manufactured goods in March increased 0.1%, following nearly two straight years of uninterrupted gains, and is at the highest level on record, which goes back to 1992.

An indictor of business investment, spending on non-defense capital goods, excluding aircraft, showed orders increased 0.1% following a 0.5% drop in February, while shipments in this sector fell 0.4, the same as an earlier advance report.

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While these latest numbers are better than what was seen earlier in the year and are a sign the U.S. economy is gaining a little steam after a disappointing first quarter, the general consensus is that growth will be slower in the second quarter than it was a year earlier.

Part of the reason is due to the rise of the dollar against foreign currencies, making U.S. produced goods more expensive for the nation’s biggest trading partners.

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