Factory orders rise for 10th time in 11 months

WASHINGTON - March 31, 2010

Still, there were signs in the report that the lift manufacturing has provided to the economy may be fading.

The Commerce Department said Wednesday that new orders rose 0.6 percent last month, just ahead of analysts' estimates of a 0.5 percent increase, according to Thomson Reuters.

But that's below January's upwardly revised increase of 2.5 percent and the smallest uptick since August 2009, the department said.

And inventories held by manufacturers rose 0.5 percent, the department said, a figure that may disappoint economists, who are hoping to see stockpiles grow rapidly as a sign of confidence in future sales. A healthy rise in inventories would also give a strong boost to the economic recovery.

In January, factory inventories rose by only 0.3 percent, a disappointing pace.

Orders for big-ticket manufactured items, known as durable goods, also rose 0.6 percent, slightly higher than a preliminary estimate released last week. Machinery orders jumped 5.1 percent, driven by higher demand for heating and air conditioning equipment and turbines and other power generation gear.

Orders for commercial aircraft, meanwhile, a volatile category, jumped nearly 33 percent last month. But the auto industry continued to struggle, with orders for motor vehicles and parts falling by 1.7 percent, the second consecutive drop.

Nondurable goods, such as chemicals, food products and apparel, rose 0.3 percent, a healthier showing than many economists expected. Chemical orders, particularly pesticides and fertilizers, as well as food products, led the increase.

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