Wednesday, May 02, 2007

Upside Surprise

Some great news that might well depict and end to the argument of Goldilocks and a soft landing. Factory orders were 50% higher than expected, durable good orders exceeded expectations, and the ISM number was the best in 11 months.....

U.S. Factory Orders Rise Sharply
Orders to U.S. Factories Jump in March by the Largest Amount in a Year

"WASHINGTON (AP) -- Orders to U.S. factories surged in March by the largest amount in a year, an encouraging sign that the recent slowdown in manufacturing may be ending.

The Commerce Department said Wednesday that total factory orders rose by 3.1 percent in March, pushed higher by a big jump in demand for commercial aircraft and the biggest rise in the category that tracks business investment in new equipment in 2 1/2 years.

The increase was far better than the 2 percent figure that analysts had been expecting and offered hope that manufacturers were beginning to experience rising demand after a recent weak period brought on by troubles in housing and auto sales.

The good news on factory orders followed a report from the Institute for Supply Management that its closely watched gauge of manufacturing activity rose to 54.7 in April, the best showing in 11 months......."

By Martin Crutsinger, AP Economics Writer

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