Durable goods orders fall 0.9 percent in February!
WASHINGTON - March 24, 2011 - Companies trimmed their orders for long lasting manufactured goods in February, buying fewer computers, machines and primary metals.
Durable-goods orders fell 0.9% last month, the Commerce Department said Thursday. It was the fourth decline in the past five months.
Orders in a category that signals business investment plans dropped 1.3%. That followed a 6% decline in January, the biggest drop in two years. Economists said harsh weather may have kept some businesses from placing orders.
"This is disappointing," said Ian Shepherdson, chief U.S. economist at High Frequency Economics. "We had expected a hefty rebound after the blizzards depressed core orders in January."
Even with the February decline, durable goods orders are 24.6% above the low hit in March 2009.
There is some concern that the earthquake and nuclear crisis in Japan might disrupt factory output in the United States because Japan ships parts to U.S. manufacturers. U.S. auto and electronics companies are seen as the most vulnerable to potential shortages of critical component parts.
But many economists believe that as long as Japanese factories are able to avoid lengthy shutdowns, any impact on U.S. firms should be short-lived.