Knapp Sees `Sign of Bottoming' in U.S. Durables Orders

Discussion in 'Wall St. News' started by aresky, Mar 25, 2009.

  1. aresky

    aresky

  2. aresky

    aresky

    March 25 (Bloomberg) -- The collapse in U.S. inventories indicates the economy is laying the foundation for a return to growth this year.

    Stockpiles of long-lasting factory goods declined 0.9 percent in February after falling 1.1 percent in January, the biggest two-month slide since 2003, the Commerce Department reported today in Washington. The decrease brought the ratio of inventories to sales down for the first time in seven months.

    “There is hope,” Stephen Stanley, chief economist at RBS Greenwich Capital in Greenwich, Connecticut, said in a note to clients. “This is exactly the progression that needs to happen, so today’s data represents an important step on the road to recovery.”

    The report bolstered forecasts that the world’s largest economy will begin to expand in the second half of the year after a likely contraction in the first six months of 2009. Retail sales, residential construction and home sales last month have all been stronger than most economists projected.


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    http://www.bloomberg.com/apps/news?pid=20601087&sid=aMrRExtsYZDc&refer=home