US factory orders rose in March for the first time since July, while Eurozone feel slightly.
Orders in the US increased 2.1 per cent following seven monthly declines, the Commerce Department reported Monday. And in further good news, orders in a key category that tracks business investment plans eked out a 0.1 per cent rise. It was the first advance in this category since last August.
Economists are hoping that US manufacturing is beginning to emerge from a long soft patch, bolstered by stronger domestic demand that will offset ongoing weakness in exports.
Orders for durable goods, which are items expected to last at least three years, rose 4.4 per cent in March. Demand for nondurable goods such as chemicals and paper dropped 0.3 per cent.
US factories have been struggling with export sales, which have taken a hit from the rise in the value of the dollar in recent months. A stronger dollar makes US exports more expensive and less competitive on overseas markets. It also lowers the cost of imported goods, making them more attractive to US consumers.
The overall increase was the first positive number since a 10.5 per cent increase last July. The strength in March was led by a surge in demand for computers and the volatile category of commercial aircraft.
Economists believe growth will rebound in the April-June quarter, helped by stronger job growth that is expected to spur consumer spending. Auto sales rose in April, led by strong demand for small and mid-size SUVs.
Eurozone manufacturing growth eased in April but factories raised prices for the first time in eight months, according to a survey that also showed headcount rose at the fastest pace in nearly four years.
Any signs of inflationary pressure will be welcomed by the European Central Bank, particularly as it only had a marginal impact on growth.
Markit’s final April manufacturing Purchasing Manager’s Index (PMI) stood at 52.0, revised up from a flash reading of 51.9 but shy of March’s 10-month high of 52.2.