Factory Goods at Forefront of Recovery; New Home Sales Struggle in February
March 24, 2010 - Orders for durable goods increased for the third consecutive month, advancing 0.5% in February. With a strong demand in commercial aircraft and machinery, factory goods seem to be at the forefront of the economic recovery.
Rebounding from tough economic times, factory goods have significantly helped out the market's healing process. American manufacturers are benefiting largely from an increase in domestic demand. Additionally, with the U.S. dollar still at a weaker value, items in the foreign market are much cheaper and are simulating more orders overseas.
While durable goods are proving to be pivotal in the market's recovery, February's new home sales report indicated otherwise. Slipping 2.2%, sales were down to 308,000 for the month. Results in the Northeast and also in the Midwest suffered greatly due to February's snowstorms; sales fell 20% in the Northeast, while numbers in the Midwest saw an 18% decline.