U.S. factory orders higher in March and business investment in capital goods jumped, indicating economic strengthening even before the bulk of the most recent stimulus spending hit the economy.
U.S. factory orders rose 1.1 percent in March, the Commerce Department said Tuesday. That was below the 1.3 percent increase expected by analysts but above the 0.8 percent contraction amid February’s harsh weather.
Orders for durable goods, those expected to last at least three years, rose a revised 0.8 percent. Initially, this was recorded as a 0.5 percent rise.
Orders for nondurable goods rose an impressive 1.5 percent in the month.
The Biden Administration’s $1.9 trillion American Rescue Plan was signed into law in mid-March but only the direct stimulus payments went out immediately. And it appears most of those funds were saved rather than spent. Most of the rest of the spending authorized in the legislation will be spent