Durable Goods Order’s Rise Indicates Recovery for U.S. Economy

Prior to the Commerce Department’s durable goods report, due Feb. 25 in Washington, the U.S. economist anticipated the orders for durable goods in January to increase the maximum in four months. It was also said that home sales signaled towards a constant approach resulting in revival of U.S. economy.

Factories are expected to pace up production fulfill the global demand for new equipments and restock supply. Any profits in home sales will result according to American reactions regarding the tax incentives and job opportunities if any created by the improved economy. The expected increase in the orders is calculated 0.9%, excluding transportation equipment demand which keeps on changing every month.

Mark Vitner, a Senior Economist at Wells Fargo Securities LLC in Charlotte, North Carolina said, “Manufacturing is coming back pretty solidly and there is some strength in capital spending. Housing is definitely a laggard. Until we get job growth and lending eases up, we’re not going to get a whole lot of lift”.

Federal Reserve Bank of New York President William Dudley last week indicated policy makers are more concerned about maintaining growth than they are about immediate inflation threats. Fed Chairman Ben S. Bernanke may deliver a similar message to Congress Feb. 24-25 during his semi-annual report on the economy and interest rates.

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