February Durable Goods Orders Rise Unexpectedly

By now, you're accustomed to the good news/bad news nature of all seemingly good economic news.

This morning, the Commerce Department reported that orders for durable goods -- refrigerators, computers, airplanes, autos, etc. -- jumped 3.4 percent in February compared to February 2008, a figure that blindsided everyone.

Analysts expected orders to rise a more modest 2 percent.

So that's the good news. The bad news: January's drop in durable-goods orders was worse than originally thought.

Last month, Commerce reported that durable goods orders in January dropped 5.2 percent. Today, Commerce revised that figure -- after getting more complete data -- to determine durable goods orders actually dropped 7.3 percent in January.

Breaking down the categories, in February, orders for heavy machinery jumped 13.5 percent (Can you say, "shovel-ready?") and demand for computers jumped 10.1 percent, while orders for autos and auto parts dropped 0.6 percent, which almost can be declared a victory.

-- Frank Ahrens
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