US factory orders rise for the first time in seven months

Amidst all the gloom surrounding the global economy and job losses, come a bit of positive news. For the first time in seven months, orders for US-made factory goods increased 1.8 per cent in February, the Commerce Department reported Thursday. However, the report also showed a notable downward revision to the data for January.

A pickup in bookings combined with plunging stockpiles are setting the stage for gains in output in coming months that may stem the slide in factory employment. Stepped up efforts by the Obama administration and Federal Reserve to ease the credit crunch may help revive economic growth later this year.

Orders for durable goods, which make up just over half of total factory demand, climbed 3.5 per cent, after a 7.8 per cent decrease the previous month. Bookings for non-durable goods including food, petroleum and chemicals rose 0.3 per cent in February following a 0.5 per cent gain a month earlier.

Machinery demand, including construction, industrial and air conditioning equipment, increased 13 per cent, the biggest jump since 1994. Demand for motor vehicles and parts rose 1.1 per cent in February, and improving sales indicate gains may continue.

Bookings for capital goods excluding aircraft and military equipment, a measure of future business investment, jumped 7.1 per cent. Shipments, used to calculate gross domestic product, increased 0.6 per cent after plunging 9.4 per cent in January.