NAM Reports Economic Growth in April 2010

Washington, DC, April 26, 2010—The National Association of Manufacturers reports that four of the five major economic indicators showed growth last week. Housing and new orders for nondefense capital goods showed upticks. Inflation at the producer level increased in March, as did energy.

New and existing home sales rose in March. This rise was buoyed by the home buyer tax credit, which is set to expire on April 30. Nondefense capital goods rose for the fourth time in the past five months. This category offers a good representation of both domestic and foreign demand for products including machinery computers and electronics, which, in turn, indicates an increased need for capacity in manufacturing.

The increase in inflation at the producer level was spurred by a 2.4% rise in food costs. This rise was due mainly to a 49% increase in fresh and dried vegetable costs, the largest monthly gain in 16 years. Florida's extraordinarily cold weather in January wiped out the state's tomato crops, spurring an increase in price. As tomatoes from California and Mexico become available in the coming months, prices should moderate.  

Advanced durable goods fell by 1.3% in March. This decline was due to a decrease in nondefense aircraft orders. Outside of transportation, new durable goods orders rose by 2.8%, the fastest growth since December 2007.

Additionally, new jobless claims dropped by 24,000 to 456,000 for the week ending April 17.