Durables Orders Post Back-to-Back Gains

Orders for durable goods increased 2.6% in January, the Commerce Department reported – marking the second monthly increase in a row and suggesting that the manufacturing sector may be pulling out of its nearly 18-month slump

A manufacturing recovery is important to the trucking industry, which depends on factory orders for much of its revenue.

The January increase was the third increase in four months. Excluding orders in the volatile transportation sector, durables rose only 1.3%.

Orders for durable goods totaled $179.1 billion. Excluding transportation costs, orders added up to $127 billion.

James O’Sullivan, an economist with UBS Warburg, said that the manufacturing recession was finally over and a recovery was underway, Bloomberg reported.

The jump in orders reflects an increase in demand for goods like automobiles, aircraft, computers and other long-lasting products.

Commerce revised December’s durable goods figures from an increase of 1.7% to increase of 0.9% and 0.4% without transportation.

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