Though durable goods orders came in lower than expected for February, down 0.9%, economist Ian Shepherdson of High Frequency Economics said he was sceptical that this meant U.S. manufacturing was taking a downturn.
In a radio interview today on Bloomberg Surveillance Shepherdson said “I don’t think there’s much wrong with the manufacturing sector.”
He said he was expecting a stronger number durable goods number for February then we got, based on his belief the market would be bouncing back from tough January weather. But with the ISM at 61.4 he reiterated that manufacturing shouldn’t be worried about it too much.
He also said February’s tough weather could have made an impact on orders.
Even with the February drop durable goods orders are 24.6% higher than the numbers seen in March 2009.
Economists expect the manufacturing industry to get a boost from tax cuts which will encourage businesses to spend more on capital goods and equipment.
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