While most economic statistics are pointing to an upturn in the economy, new orders for manufactured goods decreased 0.1% and shipments fell 2.8% in February.

The figures reported Tuesday by the U.S. Commerce Department followed a 1.1% January increase in new orders. So far this year, new orders for 2002 are 5% below the same period a year ago.
February shipments followed a 1.4% January increase, while year to date, shipments for 2002 are 6.1% below the same period a year ago.
The Commerce Department also reported a 2.4% drop in shipments of non-durable goods following a 3.2% decline for durable goods reported last week.
This drop in non durable shipments includes large falls for paper (-4.8%), chemicals (-3.2) and tobacco (-15.9%).
Newport Communications Senior Economist Jim Haughey says the decline is at odds with the previously reported strong February manufacturing shipments in the Institute of Supply Management’s index, plus news of a rise in employment, a huge 1.1% rise in construction spending, and the 0.6% February gain in total consumer spending.
So which data is right? “I would bet that the February shipment data is the exception,” says Haughey.
“Several market monitors weakened in February then improved strongly in March," he says. "This includes measure of confidence, prices, layoffs and surveys of manufacturing activity.”
He says with inventories falling, unfilled orders rising, and the very cyclical orders for capital goods rising, the recovery for the American economy is still on track.