Factory orders in the U.S. jump unexpectedly in April
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Orders to U.S. factories unexpectedly jumped in April, led by demand for petroleum and chemicals, signaling purchases from abroad are helping sustain manufacturing.
The 1.1% increase followed a 1.5% gain in March that was higher than previously estimated, the Commerce Department said Tuesday in Washington. Bookings excluding cars and airplanes climbed 2.6% for a second month.
Increases in categories such as machinery and electrical equipment indicate that a weaker dollar is making American-made goods more attractive to overseas buyers, helping to keep some factories running. Still, soaring costs for raw materials and a cooling in consumer and business spending will prevent manufacturing from strengthening in coming months.
“This is a solid reading on underlying manufacturing activity,” Bear Stearns economists John Ryding and Conrad DeQuadros said in a note to clients. “The consumer and housing, rather than the factory sector, are bearing the brunt of the downturn in the economy.”
Economists had forecast orders would decline 0.1%, according to Bloomberg News.
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