US Manufacturing Sector Ups Outlook
The US manufacturing sector has upwardly revised its outlook following a surge in the number of new orders for durable goods, which increased by 2.5 percent in March, the Commerce Department said on Wednesday.
A new data released by the United States Commerce Department showed a significant increase in the number of new orders for durable goods in March, suggesting a stronger manufacturing sector in the coming months.
Based on the data, the Commerce Department said that new orders for long-lasting products increased by 2.5 percent following an upwardly revised 0.7 percent in the previous month.
The figures also beat earlier analysts’ expectation of two percent as sales of motor vehicles, transportation equipment, and aircrafts increased in March 2011.
Meanwhile, the data also showed that durable goods orders – excluding transportation – increased by 1.3 percent, significantly growing from 0.6 percent in February.
The sales of durable goods is one of the leading indicators on how the manufacturing sector performs in a particular period.
Many analysts were surprised by the data, saying that the sector has posted a solid performance in March despite losing momentum in the first two months of the year.
On the other hand, many economists are expecting a slowdown in the US economy due to weak consumer spending and wider gap in trade. But the US central bank said that the slowdown in the economic growth rate is only temporary.