- Wells Fargo
In April, domestic manufacturers were negatively affected by weak news, though some recently published mixed industrial reports. According to the Commerce Department, orders for durable goods, items ranging from phones to aircraft, surged 3.4% after an upwardly revised 1.9% advance in March. Previously reported durable goods, for March posted a 1.3% increase in March. Strong demand for long-lasting US manufactured goods advanced in April due to orders from transportation sector, namely commercial planes. These orders accounted for 85% of the increase in April bookings. Typically large planes are built or delivered in five years after they are ordered. Nevertheless, companies have been reluctant to invest more heavily because of a tepid global economy and falling exports.
The number of Americans applied for unemployment benefits last week dropped more than expected last week, moving back to near cycle lows as the labor markets remain healthy and the economy regains momentum after stumbling in the first quarter. According to the Labour Department, weekly applications for unemployment aid plunged 10,000 to a seasonally adjusted 268,000 for the week ended May 21. Sustained decrease in claims from the one-year peak address was spurred by transitory events such as the spring break holiday at schools as well as auto plant shutdowns in Michigan.
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