Consumer news briefs for May 4, 2004

Tuesday, May 4, 2004 | 11:06 a.m.

Factory orders jump by 4.3 percent in March

WASHINGTON -- America's factories saw orders jump in March by the largest amount in more than a year and a half, a sign that the nation's manufacturers are getting a firmer grip on their own business recovery.

The Commerce Department reported today that orders placed with factories went up 4.3 percent in March from the previous month. That marked the biggest increase since July 2002 and exceeded economists' forecasts for a 2.4 percent advance.

March's orders figure, which followed a 1.1 percent increase in February, reflected stronger demand for a wide variety of goods, including cars, machinery, household appliances, food and clothes.

Hard hit by the 2001 recession, the manufacturing sector has struggled over the past three years. But it is now getting back on solid footing. Still, many plants continue to operate below full throttle and employment remains lackluster.

Stage set for higher rates

WASHINGTON -- Economists, traders and analysts expect the Federal Reserve today to signal it is closer to raising its benchmark interest rate in the next three months as the U.S. economy strengthens.

The Fed in a statement accompanying its rate decision this afternoon will likely drop the word "patient" in describing how long it can keep rates low, according to a Bloomberg News survey of analysts.

All 92 economists surveyed expect Fed policy makers to at least for now keep the overnight bank-lending rate at 1 percent, the lowest since July 1958.

An announcement was expected after the Las Vegas Sun's deadline today. Details will be posted on the Sun's Web site lasvegassun.com