WASHINGTON – Factory orders are picking up and the economy may soon follow.
A rise in demand for long-lasting manufactured goods in May suggests the parts shortage stemming from the Japan crises is fading. It would also support the view offered by many economists, who have suggested that the economic slowdown is temporary and that growth will strengthen this summer after six dismal months.
Economists have largely blamed the sluggish stretch on high gas prices, which have come down since peaking in early May. They have also cited the impact of the March 11th earthquake and tsunami in Japan, which has led to supply disruptions that have hampered U.S. manufacturers.