US economic recovery looks weak as manufacturing orders take a hit
US MANUFACTURING orders were weak and house prices kept tumbling last month, data out yesterday showed – though consumer confidence did rise in February.
Durable goods orders fell four per cent in January, the Commerce Department said yesterday – the largest fall since January 2009 when the country was mired in recession.
The orders rose strongly in November and December, and January’s fall exceeded the one per cent drop forecast by economists.
Meanwhile house prices fell four per cent on the year to December across the 20 major American cities monitored by the S&P / Case Shiller index – the largest fall since July 2011.
“We are still looking at foreclosure issues, distressed properties and low absolute levels of activity,” said economist Sean Incremona from 4Cast.
“It is really a tough market for these prices to make any progress.”
However, consumer confidence increased in February according to the Conference Board, who reported a rise in their index to 70.8 from 61.5 in January.
The rise still keeps the index in weak territory – 13.3 per cent of consumers described business conditions as “good” while 31.2 per cent said they are “bad.”
In terms of employment, 6.6 per cent described jobs as “plentiful,” up from 6.2 per cent a month ago, while the number calling jobs “hard to get” fell from 43.3 per cent to 38.7 per cent.