WASHINGTON DC: After falling 0.5 percent in February, new factory orders for U.S.-made products rose 1.1 percent in March, as the pandemic relief package of the The White House and the expansion of the vaccine program to all American adults helped raise domestic demand.
The recovery was lower than the 1.3% growth estimated by economists surveyed by Reuters. Annually, new orders for U.S.-made products rose 6.6 percent, the news agency reported.
According to the U.S. Department of Commerce, factory product orders in March withdrew due to strong demand for machinery, motor vehicles, manufactured and primary metal products. However, orders for electrical equipment, appliances and components fell.
Unfilled orders in factories rose 0.4% in March, after rising 0.9% in February.
Meanwhile, orders for non-defense capital goods, excluding aircraft, a closely watched indicator of business equipment spending plans, rose 1.2% in March, from the 0.9% previously estimated.
Shipments of basic capital goods, which are used to calculate spending on business equipment in the GDP (gross domestic product) report, rose 1.6 percent, instead of 1.3 percent. previously reported.
Business spending on equipment showed double-digit growth during the third consecutive quarter of the quarter ended March.
However, in the short term, bottlenecks in the supply chain could delay the recovery of factory orders.
According to the Institute for Supply Management, the shortage of tickets slowed the growth of manufacturing activity in April, even when GDP growth reached an annualized rate of 6.4 percent. in the first quarter, due to strong consumer spending. In comparison, GDP grew by 4.3% in October-December 2020.
Economists have forecast double-digit GDP growth in the second quarter, which could help boost economic growth to 7%, the fastest pace since 1984.