Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, May 24, 1990 TAG: 9005240067
SECTION: BUSINESS PAGE: C-9 EDITION: METRO
SOURCE: Associated Press
DATELINE: WASHINGTON LENGTH: Medium
"It kind of a coincides with the industrial production report we saw earlier," which showed a 0.4 percent decline in April, said economist Thomas Runiewicz. "It shows the manufacturing side is still sluggish and planners are still insecure about the future."
The Commerce Department said durable goods orders to U.S. factories totaled a seasonally adjusted $123.3 billion for the month. The decline erased nearly half of the 8.9 percent gain during the previous two months after a record 10.5 percent drop in January.
But excluding the transportation sector, orders for durable goods - items expected to last at least three years - were off just 0.1 percent in April.
"The volatility in orders the last four months is attributable to the transportation equipment industry," the department said. "Excluding transportation, orders have been relatively flat."
Declines in both aircraft and automobile orders in April caused a 14.3 percent drop in the transportation sector to $31.6 billion. The drop followed gains of 23.4 percent in March and 10.1 percent in February. Transportation orders had plunged 29.4 percent in January.
Non-defense capital goods orders, often a barometer of business investment plans, were down 9.7 percent to $36.9 billion after rising 13.3 percent in March.
"The one positive note is that unfilled orders are still on the plus side," Runiewicz said. "It means there's still a backlog there."
A backlog of orders means there is less chance of production cutbacks and loss of jobs.
by CNB