WASHINGTON (AP) -- Orders for manufactured goods posted a surprisingly strong increase in April as demand rose in a number of areas including heavy machinery, iron and steel.The Commerce Department reported Tuesday that orders were up 1.1 percent in April following a 1.5 percent increase in March. Those gains followed big declines in January and March that raised concerns about how much pain manufacturing industries would feel from the severe economic slowdown hitting housing and the financial sector.
Orders in the battered auto industry and commercial aircraft sector did fall sharply in April, but other areas showed strength catching analysts by surprise. They had been forecasting that overall orders would edge down slightly in April.
The better-than-expected reading on orders for manufactured goods followed news Monday that a key gauge of manufacturing rose to a reading of 49.6 in May, up from 48.6 in April.
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