US durable goods orders on the rise as rout eases

Bloomberg

The 1.8 percent gain in bookings for items meant to last several years matched the previous month’s increase, the Commerce Department said Wednesday in Washington. Economists projected orders would drop 0.9 percent, according to a Bloomberg News survey.

The economy is projected to return to growth in the second half of the year, and sustained gains in consumer spending may encourage businesses to boost investment and production after having slashed inventories earlier this year. Still, economists anticipate that rising unemployment and tight credit will temper the recovery. "New orders are beginning to stabilize," Michael Moran, chief economist at Daiwa Securities America. "The economy seems to be on course for a gradual turn."