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New orders for long-lasting manufactured goods saw their biggest gain in 16 months in April and fewer workers filed for new jobless benefits last week, according to official data on Thursday that suggested the deep recession was abating.
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CNBC.com |
The Commerce Department said new orders for durable goods rose 1.9 percent, the biggest percentage advance since December 2007. However, March orders were revised sharply lower, falling 2.1 percent from the previously reported 0.8 percent decline.
A separate report from the Labor Department showed initial claims for state unemployment insurance dropped by 13,000 to a seasonally adjusted 623,000 in the week ended May 23, falling for a second straight week.
However, the number of people staying on benefit rolls after drawing an initial week of aid increased 110,000 to a higher-than-forecast 6.79 million in the week ended May 16.
U.S. stock index futures pared gains after the data. Treasury debt prices briefly pared gains, while the dollar was flat.
"The data is consistent with the view that the rate of contraction is slowing, but we are still working our way through a recession. We haven't hit a bottom yet," said James Masi, chief fixed income strategist at Stifel Nicolaus in Baltimore.
The reports were the latest in a series that have raised optimism that the 17 month recession was starting to ease. Data on Wednesday showed an increase in the sales of previously owned homes.
But high unemployment, underscored by the Labor Department report showing that continued claims have set record highs in every week since Jan. 24, indicate that any recovery after the recession will be painfully slow.
Continuing claims are now more than double the level they were a year ago.
New orders excluding transportation climbed 0.8 percent in April after declining 2.7 percent in March, boosted by orders for communications equipment, machinery and fabricated metal products, the Commerce Department said.
However, there were some dark spots in the report. Civilian aircraft and parts tumbled 6.8 percent after surging 7.5 percent in March.
Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending, fell 1.5 percent in April. The prior month was revised to show a 1.4 percent decline.
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Data is a real-time snapshot *Data is delayed at least 15 minutes