U.S. factory orders post solid increase

  • 2/10/2023
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Washington, Rajab 27, 1437, May 4, 2016, SPA -- New orders for U.S. factory goods rose more than expected in March, while shipments and inventories increased for the first time since last summer, the government reported Wednesday, suggesting that the downturn in manufacturing may be nearing an end. The Commerce Department said new orders for manufactured goods increased 1.1 percent in March, following a 1.9 percent decline the previous month. Economists expected a 0.6 percent gain in March. Factory orders were mixed, with orders for transportation equipment surging 2.8 percent, orders for machinery rising 0.5 percent, and orders for primary metals increasing 0.6 percent. But orders for cars and parts fell 0.9 percent, and orders for electrical equipment and appliances plunged 2.6 percent. Orders for non-defense capital goods excluding aircraft-a closely watched category considered a good indicator of business spending plans-rose 0.1 percent in March after being flat the previous month. Inventories of factory goods rose 0.2 percent in March, the first increase in eight months. Shipments of manufactured goods increased 0.5 percent after falling for eight consecutive months. Manufacturing, which accounts for about 12 percent of the U.S. economy, has been hurt by a strong dollar and weak global demand, which have limited exports of factory goods and slowed efforts by businesses to reduce excess inventory. Investment cuts by energy companies as they adjust to smaller profits from cheap oil also have affected the manufacturing sector. --SPA 19:35 LOCAL TIME 16:35 GMT www.spa.gov.sa/w

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