Long-term US durable goods orders rebounded in March after a weak performance the previous month, but a shortage of key supplies continues to hold back manufacturers as they race to keep up with growing customer demand.
On Monday, the government said durable goods orders rose 0.5% last month. These products, such as electronics, appliances, machinery, cars, and other transportation equipment, are supposed to last for at least three years.
Expectations indicated a 2.2% increase. Requests would have been three times stronger in March had it not been for a sharp drop in commercial and military aircraft reservations.
Orders fell in February for the first time since the pandemic began, mostly due to unusually harsh winter weather and a sharp drop in car production due to a shortage of mainframe computer chips. However, one problem few companies face is the lack of demand.
The US economy accelerated after another massive stimulus and a drop in coronavirus cases. By nearly every measure, the demand for a range of manufactured goods is on the rise and it is unlikely that there will be any stoppages in the near future.