By Kasra Kangarloo
WASHINGTON (MNI) – Orders for manufactured goods in the U.S. are
forecast to have risen in February, providing another boost to the
nascent recovery in the manufacturing sector.
According to a survey of economists by Market News International,
headline durable goods orders are expected to rise 1.5%.
The transportation sector should pull down expected gains, as
Boeing reported that aircraft orders fell from 34 orders in February to
21 in January. Automobile sales may offset this loss, as domestic sales
rose to an annual pace of 10.22 million units after 9.61 million the
previous month.
“We don’t see much upside scope for transportation,” Sean
Incremona, economist at 4Cast Ltd., said in a telephone interview.
Recent indicators suggest underlying strength in the manufacturing
sector, which should bolster orders outside transportation. The
Institute for Supply Management’s February manufacturing index rose to a
six-year high, led by gains in orders, production, prices paid and
employment. The only substantial fall was in the inventories index,
although this could also reflect a sudden boost in demand.
Goods producing jobs also posted the highest monthly gain since
2006 with an additional 70,000 jobs, yet another sign of renewed
production.
“We’ve been seeing a lot of indicators suggesting relative strength
in the manufacturing sector,” said Scott Brown, economist at Raymond
James. “It might be a little mixed across industries, but there is a
general trend of improvement.”
The durable goods report will be released at 8:30 am EDT Thursday
by the U.S. Department of Commerce.
–Kasra Kangarloo is a reporter for Need to Know News
** Market News International Washington Bureau: 202-371-2121 **
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