As businesses feel better about sales prospects, they invest in plant and equipment.
The business cycle is stronger every day.
* * * * * J B K * * * * *
San Francisco
March 24 (Bloomberg) -- Orders for long-lasting goods rose in February for a third month, while inventories and backlogs climbed by the most in more than a year, indicating the manufacturing rebound will keep propelling the U.S. recovery.
The 0.5 percent increase in bookings for durable goods was in line with the median forecast of economists surveyed by Bloomberg News and followed a 3.9 percent gain the prior month, the Commerce Department said today in Washington. Excluding transportation equipment, orders advanced 0.9 percent, more than anticipated.
Business spending on new equipment, inventory restocking and a pickup in global demand mean companies from Boeing Co. to Owens-Illinois Inc. can look forward to sustained sales gains. A pickup in employment is needed to broaden the expansion as the economy heals from the worst recession since the 1930s.
http://www.bloomberg.com/apps/news?pid=20601087&sid=auazGT_N.U.U&pos=3
