The U.S. Commerce Department announced today that orders for durable goods in the United States were better than expected in March. Following a 2.1% increase of orders in February, March numbers showed growth of 2.6%. Durable goods, goods that are expected to last at least three years, include everything from dishwashers to stoves to airplanes. Whenever orders for durable goods pick up, it’s usually seen as a strong sign of economic growth. Especially after a winter that can only be described as harsh for the U.S. economy, growth in sales of these long lasting goods comes as a welcome reprieve.
Adding an extra bit of sweetness to today’s economic news is the revised economic outlook from the Conference Board, a New York-based economic group. Revising its earlier predictions, the group now estimates that thanks to healthy job growth numbers in March, the United States economy should see growth 0.8% higher than previously predicted, putting it more in line with a Bloomberg survey that puts overall growth of the U.S. economy for 2014 at 2.7%.
The U.S. Economy Continues to Enjoy a Spring Bloom
Both welcome bits of news continue a string of good news from the economic sector that ostensibly began as the snows stopped and the ground began to thaw. On April 2, the SandP 500 reached its highest point ever, measuring in at 1890.90 at the end of the day. Flash forward three-weeks to today, and the stocks remain near their record highs, showing that U.S. markets have recovered enough to weather the sticky situation in the Ukraine and the small but noticeable contraction in European and Asian markets. While it’s too soon to make any claims that the United States is back to its golden age status, things are looking rosier than they have for a long time.
While many people naturally will see this news as something worth celebrating, not everyone is sold. A number of professionals in the financial industry warn people not to invest too much time in something if it won’t do them any good in the long run.
“Durable good orders come out every single month, and all of them are old news,” says Craig Slayen, Principal at Winship Wealth Partners. “These daily news stories should have no effect on your set of investments, if you are a long term investor. These things will only matter if you’re a short term investor or speculator.“