Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights factory orders.

  • factoryorders050311
    The Census released new data on factory orders this morning which rose 3.0% in March, the 5th consecutive increase.  This increase was stronger than expected and reflected improved demand for both durable and non-durable goods.  Strength in electronics, furniture, transportation goods and machinery all buoyed up the indicator.  Both inventories and unfilled orders rose suggesting that this trend will continue in the short-term.
  • March’s strong reading for factory orders indicates that despite rising fuel prices, supply-chain disruptions caused by the tsunami and nuclear crisis in Japan, and volatile consumer confidence, businesses expanded their pattern of investment in capital goods and consumer’s appetite for big-ticket items like automobiles remains strong.  This trend is important as it suggests confidence on the part of business that will drive the expansion of the economy and hiring.  Sustained job growth is key for the health of the housing market.
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