April manufacturing, home sales spur economy

WASHINGTON - Orders for large manufactured goods rose sharply last month while sales of new homes surged with help from government incentives, giving the economic recovery a jolt in April.

Demand for commercial aircraft lifted requests for durable goods 2.9 percent last month, the Commerce Department said Wednesday. That was the best showing in three months and more than double expectations.

Excluding transportation, orders fell 1 percent in April. But that came after the March figures were revised to show a 4.8 percent jump.

Durable goods are products that are expected to last at least three years.

A separate report from Commerce showed sales of new single-family homes jumped 14.8 percent to a seasonally adjusted annual rate of 504,000 units. The April gain followed a 29.8 percent surge in March, the biggest monthly increase in 47 years.

Housing sales were pushed higher this spring by a stampede of buyers trying to sign contracts before tax credits expired on April 30. Historically low mortgage rates also helped fuel purchases. But sales are expected to slump in the coming months as households deal with slow job growth and tight credit.

Manufacturing has held steady during the recovery. U.S. companies are benefiting from rising demand at home and in major export markets.

There are concerns that a debt crisis in Europe could derail the global recovery. Financial markets have been roiled in recent weeks by fears that the problems facing Greece could spread to other heavily indebted European countries, such as Spain and Portugal.

But economists say the U.S. manufacturing industry may be strong enough to weather Europe's troubles.

The rise in orders was led by a 228 percent surge in demand for commercial aircraft. The increase reflected strong demand for aircraft manufactured by Boeing Co. It also more than offset a 71.2 percent plunge in March in the highly volatile category. Orders for motor vehicles climbed 1.6 percent following an even stronger 4.5 percent gain in March.

The 1 percent drop in orders excluding transportation was a result of declines in a number of areas that had big gains in March. - AP