Two good pieces of news about the American economy were released Tuesday: Consumer confidence and durable goods orders and shipments are on the increase.

The New York-based private research group the Conference Board reports its Consumer Confidence Index rose to 97.3 in January from 94.6 in December.
All of the gain was in the Consumers' Expectations Index for jobs and business six months ahead, which rose from 92.4 in December to 96.9 in January, a one-year high. The gauge is up more than 25 points following the Sept. 11 attacks and Tuesday’s number beat analysts' expectations.
The Board’s Present Situations Index was unchanged, suggesting that the Sept. 11-induced dip in the economy is now over, says Newport Communications Senior Economist Jim Haughey.
“The confidence gain is consistent with the continued fall in new claims for unemployment insurance for the last three weeks and reported week-to-week gains in retail sales over the same period.
Meantime on Tuesday, the U.S. Commerce Department released figures showing durable goods orders increased 2% in December, following a revised 6% drop the month before. Durable goods shipments by manufacturers increased 0.5% in December, reversing a 0.4% rise in November.
Shipments have been approximately steady for three months after a 10% decline in the first nine months of 2001. The declining sectors are primary metals (-3.1%), machinery (-1.8%) and aircraft (-1.8%).
According to Haughey, “These are always the tail-end of the business cycle and are likely to decline for several more months.”
Computers and electronic products (+1.6%) and electrical equipment (+2.3%) continue to record increased sales. They were the first sectors to decline early last year and, as expected, the first to recover. Both the durable good and shipments numbers are leading more analysts to predict the beleaguered manufacturing sector could start emerging from a more than year-long down turn that it has been experiencing.
“Durable goods manufacturers cut their inventories 0.4% in December, much less than reductions in previous months,” says Haughey. “At this late stage of the business cycle this signals that very little excess inventory remains."
News of the economic improvements come the same day the Federal Reserve began a two-day meeting. Policy makers are expected to announce on Wednesday they will leave interest rates uncharged.