U.S. February factory orders seen falling 0.8 percent
April 2nd, 2008 | by admin |WASHINGTON (Reuters) - New orders to U.S. factories for manufactured goods will likely post their second straight monthly drop in February, providing further evidence of a flagging industrial sector, according to a Reuters poll.
The median forecast of 58 economists showed February orders falling 0.8 percent after a 2.5 percent January fall. Forecasts ranged from a 2.7 percent decline to an 0.8 percent rise.
Analysts polled expect the key durable goods component, which measures demand for long-lasting goods like new cars and refrigerators, to post a 1.7 percent February fall unrevised from the 1.7 percent decline originally reported last week.
The Commerce Department issued the durable goods report for February on March 26.
Manufacturing had been helping to offset weakness in the housing sector, but back-to-back declines — in concert with other gloomy economic information — would help set the stage for the Federal Reserve to cut interest rates further.
The central bank’s policy-setting committee meets from April 29-30. Investors expect it to cut rates by another half a percentage point. That would come on top of the three percentage points that it has already lowered its benchmark overnight funds rate since mid-September to head off a recession. The rate now stands at 2.25 percent.
The Commerce Department is scheduled to release the report at 10 a.m. (1400 GMT) on Wednesday.
Here is a selection of comments from economists:
Lehman Brothers
