In February, USA experienced a sudden jump in orders for big ticket manufactured goods and new homes sales. But experts of economy predict this jump will not last for long and will disappeared as the recession persist more.
On last Wednesday, the Commerce Department said, the orders for durable goods (manufactured products expected to last at least for 3 years) had experienced a jump of 3.4% in February and it was much better than the pre-estimated fall of 2%. This jump is the first upward movement for the last 6 months. The department also included, the new homes sales also experienced a sudden jump in sales and break their continuous declining trend in February.
But experts did not agree on the point that this upward movement will sustain and become the signal for economic recovery. They, in general, mentioned this jump as a blink after the record decline in January. They also mentioned, the jump of durable products order were due to government order of military air crafts and parts. They also mention, although their is an increase in sales of new homes yet the real estate sector need 12.2 months more to sell all the prepared homes if the current trend exist.
The Economist mention this jump as a good signal for the recovery and it also indicate people are feeling some sort of confidence with governments attempt to revive the economy. Although such jumps may not last for long due to the expectation of prolonged recession. but it indicate to reach the point of recovery.
On last Wednesday, the Commerce Department said, the orders for durable goods (manufactured products expected to last at least for 3 years) had experienced a jump of 3.4% in February and it was much better than the pre-estimated fall of 2%. This jump is the first upward movement for the last 6 months. The department also included, the new homes sales also experienced a sudden jump in sales and break their continuous declining trend in February.
But experts did not agree on the point that this upward movement will sustain and become the signal for economic recovery. They, in general, mentioned this jump as a blink after the record decline in January. They also mentioned, the jump of durable products order were due to government order of military air crafts and parts. They also mention, although their is an increase in sales of new homes yet the real estate sector need 12.2 months more to sell all the prepared homes if the current trend exist.
The Economist mention this jump as a good signal for the recovery and it also indicate people are feeling some sort of confidence with governments attempt to revive the economy. Although such jumps may not last for long due to the expectation of prolonged recession. but it indicate to reach the point of recovery.
0 comments:
Post a Comment