Figures released Thursday morning showed new orders for U.S.-made goods rose more than expected in March, boosted by strong demand for transportation equipment and a range of other products. But the numbers out of the U.S. Commerce Department showed signs that business spending on equipment is slowing.
The department said factory goods orders rose 1.6%. Data for February was revised up to show orders jumping 1.6%instead of the previously reported 1.2% increase.
Economists had forecast factory orders increasing 1.4% in March. Orders rose 7.7% on a year-on-year basis in March.
Orders for transportation equipment increased 7.6%, lifted by a 44.5% hike in the volatile orders for civilian aircraft. Transportation orders rose 8.9% in February. Orders for machinery fell 1.9%, the largest drop since April 2016, after rising 0.6% in February.
Manufacturing, which accounts for about 12%f U.S. economic activity, is being supported by strong domestic and global demand. But a shortage of skilled workers and rising commodity prices after the Trump administration imposed tariffs on steel and aluminum imports are starting to impact production.
A survey on Monday showed sentiment among manufacturers falling in April for a second straight month amid growing concerns about the tariffs, which were imposed by President Donald Trump in March.
