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US durable goods orders rise, point to factory resilience

ORDERS for long-lasting US manufactured goods rose more than expected in April, a hopeful sign that a contraction in factory output could soon run its course.

New orders for durable goods, which range from toasters to aircraft, increased 3.3pc last month, the Commerce Department said on Friday.

The data was the latest to show the U.S. economy showing surprising resilience in the face of harsh fiscal austerity measures enacted this year.

"(It's) another sign that growth is holding up quite well," said Paul Ashworth, an economist at Capital Economics in Toronto.

While Washington hiked taxes in January and sweeping budget cuts began in March, consumer spending has looked relatively robust and many economists think the US Federal Reserve could begin tapering a monetary stimulus program by the end of the

year.

Economists polled by Reuters had expected new durable goods orders to rise 1.5pc last month. The Commerce Department also revised prior readings for orders to show a smaller decline in March than previously estimated.

Futures for U.S. stock indexes pared losses following the data's publication, while yields rose on US government debt.

Reuters