Manufacturing rebounds
Orders for manufactured goods rose 1.1 percent in April, a sign that the industry could pull out of its recent slump, the Associated Press reported. This follows a 1.5 percent increase in March after orders had fallen in January.
Demand for automobiles fell 4.2 percent and commercial aircraft orders plummeted 24.4 percent, but other areas, such as appliances and heavy machinery, showed strength. Demand for petroleum also rose, mainly because of soaring oil prices.
The Institute for Supply Management’s manufacturing gauge also increased to a reading of 49.6 in May, up from 48.6 in April. Though it still signals a contraction, with a reading below 50, the increase is a positive sign for the industry.
Although the housing crisis has cut into demand for building supplies and higher gasoline prices have hurt auto sales, strong demand for U.S. exports is helping the industry.