Rising demand pushes orders up in April

WASHINGTON -- Orders for manufactured goods posted a surprisingly strong increase in April as demand rose across a number of industries.

The Commerce Department reported that orders were up 1.1 percent in April following a 1.5 percent increase in March. Orders had fallen in January and March as a spreading slowdown in the overall economy depressed activity in manufacturing.

The April increase came as a surprise. Analysts had been forecasting a small decline. Orders in the battered auto industry and in the volatile commercial aircrafit sector did fall sharply but other areas showed strength from rising demand for iron and steel to appliances and heavy machinery. Demand for petroleum was also up sharply, reflecting sharply higher prices.