U.S. durable goods orders increased in March

U.S. durable goods orders rose 3.4
percent in March, almost five times the median forecast, signaling
that corporate spending is accelerating.

“The manufacturing sector is on fire,” said Anthony Chan,
chief economist at Banc One Investment Advisors in Columbus, Ohio.

The increase in orders for items made to last at least three
years exceeded all estimates in a Bloomberg News survey of 67
economists and followed a 3.8 percent rise in February, the
Commerce Department said in Washington. Treasury securities fell
after the report boosted speculation the Federal Reserve will
begin raising interest rates sooner than many investors expected,
and Morgan Stanley raised its forecast for first-quarter growth.

The jump in orders makes it more likely companies will boost
work hours or hiring, Lehman Brothers Inc. economist Drew Matus
said.

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Bloomberg News

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