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ECONOMIC REPORT: U.S. factory orders rise 0.1%; March durable goods revised higher to -2.3%
By Rex Nutting, MarketWatch
Last Update: 10:01 AM ET May 3, 2005

WASHINGTON (MarketWatch) - Orders for factory goods increased 0.1% in March, led by demand for refined petroleum, the Commerce Department estimated Tuesday.

Economists were looking for a 1% decline in new orders, according to a survey conducted by MarketWatch.

Orders for durable goods fell 2.3% in March, revised up from last week's reported 2.8% decline.

Orders and shipments for nondurable goods increased 2.8%, led by petroleum and tobacco.

Excluding the 18.3 percent increase in petroleum, orders fell 1.5% in March.

In February, orders were revised to a 0.5% decline from a 0.2% gain estimated a month ago.

The weakening in orders adds to concerns that the nation's manufacturing sector slowed after the Dec. 31 expiration of a special tax break for business investment goods.

The report is not likely to have any impact on deliberations at the Federal Open Market Committee, which is meeting Tuesday to consider an eighth quarter-percentage point rate hike. The Fed has been focused on rising inflation, saying the outlook for growth remains very favorable.

Shipments of factory goods increased 1.3% in March after falling 1.5% in February. Excluding petroleum, shipments fell 0.2% in March.

The figures are seasonally adjusted, but are not adjusted for price changes.

Inventories of factory goods rose 0.6%, the 16th straight increase. The inventory-to-shipments ratio fell to 1.25 from 1.26.

Orders for core capital goods dropped 4% in March, revised down from a 4.7% decline estimated last week. Shipments of core capital goods - the best monthly measure of business investment - fell 0.8% in March after declining 2.6% in February.

Within durable goods, orders for transportation goods fell 7.3%, including a 22.7 percent drop in civilian aircraft orders and a 2.9% decline in motor vehicles.

Excluding transportation, factory orders increased 1.3%, the biggest increase in a year.

ECONOMIC REPORT: Layoff plans down 33% in April; April figure lowest since Nov. 2000
By Greg Robb, MarketWatch
Last Update: 10:00 AM ET May 3, 2005

WASHINGTON (MarketWatch) - Layoff announcements by U.S. companies fell to their lowest level since Nov. 2000, outplacement firm Challenger Grey & Christmas said Tuesday.

Job reductions fell 33% in April to 57,861.

Layoff announcements are down 20% from April 2004.

Despite the decline, job cuts in the first four months of the year are 3% higher than in the same period last year.

"The lowest job-cut figure since 2000 is certainly great news for an economy that has been struggling for over two years to produce definitive signs of a strong turnaround," said John Challenger, chief executive officer of the outplacement firm.

"While some economic reports have been tepid, there is no denying that the job market is improving," he said.

Challenger tracks announcements by corporations about hiring and firing, not actual job reductions or additions, which can take months to be accomplished. Some of the job reductions are accomplished by voluntary measures, such as early retirements or quitting. The figures are not adjusted for seasonal factors.

The figures come just days before the Labor Department reports on April nonfarm payrolls and the monthly unemployment rate. Economists are expecting a gain of about 193,000 nonfarm jobs in April.

The unemployment rate is expected to remain at 5.2% when the data is released on Friday morning.

The largest cuts in April came in industrial goods, government and electronics.

Meanwhile, corporations announced plans to hire 22,452 workers over the next few months. This is up 21% from March.

10:00am 05/03/05 U.S. APRIL LAYOFFS AT LOWEST LEVEL SINCE NOV. 2000
10:00am 05/03/05 U.S. APRIL CHALLENGER LAYOFFS DOWN 33% TO 57,861
10:00am 05/03/05 U.S. MARCH CORE CAPITAL GOODS ORDERS -4% VS. -4.7%
10:00am 05/03/05 U.S. MARCH FACTORY ORDERS EX-PETROLEUM DOWN 1.5%
10:00am 05/03/05 U.S. MARCH NONDURABLE ORDERS UP 2.8%
10:00am 05/03/05 U.S. MARCH FACTORY INVENTORIES UP 0.6%
10:00am 05/03/05 U.S. FEB. FACTORY ORDERS REVISED -0.5% VS. 0.2%
10:00am 05/03/05 U.S. MARCH DURABLE GOODS ORDERS REVISED -2.3% VS. -2.8%
10:00am 05/03/05 U.S. MARCH FACTORY SHIPMENTS UP 1.3%
10:00am 05/03/05 U.S. MARCH FACTORY ORDERS UP 0.1% V -1.0% EXPECTED