U.S. demand for manufactured items rose less than expected in April, suggesting factory activity was losing momentum in the second quarter, while new claims for unemployment benefits fell slightly last week, indicating modest labor-market improvement, the government reported Thursday. The Commerce Department said new orders for durable goods-expensive items expected to last at least three years-rose 0.2 percent last month, a slight gain following a 3.7 percent plunge in March. Economists had expected durable-goods orders to rise 0.5 percent. Orders were limited by a 2.8 percent decline in machinery and a 34 percent drop in military aircraft. Orders for computers and electronic products fell 0.6 percent. Excluding the volatile transportation sector, orders fell 0.6 percent. Civilian transportation orders were strong, however. Orders for cars and trucks rose 5.6 percent, while non-defense aircraft orders rose 7.2 percent despite Boeing reporting that it received only four orders for aircraft last month. Orders for non-defense capital goods-a closely watched gauge of business spending plans-fell 1.9 percent in April following a 2.2 percent decline the previous month. Meanwhile, the Labor Department said jobless claims fell last week by 2,000 to 370,000. The four-week moving average of claims-considered a better measure of labor-market trends-fell 5,500 to 370,000. Jobless claims have been steady the past four weeks, indicating a marginal improvement in the pace of job creation after April's disappointing 115,000 gain in non-agriculture payrolls. When claims fall below 375,000 per week, it usually suggests hiring is strong enough to lower the unemployment rate, currently at 8.1 percent.
