US factory orders soar in March

WASHINGTON -- A jump in demand for commercial aircraft pushed orders for big-ticket manufactured goods higher in March while sales of new homes shot up at the fastest pace in 13 years, reflecting a rebound from bad weather in February.

Both reports depicted an economy continuing to expand at a healthy pace, a view supported by a new survey of business conditions around the country released yesterday by the Federal Reserve.

The Fed's 12 regional banks used words such as ''solid" and ''steady" to describe the economy's performance in March and early April.

In New England, the Boston Fed reported that most manufacturers and some other businesses reported revenue in the first quarter well above year-ago levels. Retailers also reported positive results, with most companies passing cost increases on to customers. While the labor market grew stronger, the housing market continued to slow.

Some analysts said the strong growth plus rising inflation pressures will mean the central bank's rate-setting Federal Open Market Committee will not only raise rates for a 16th time at its next meeting, in May, but will keep going after that.

The Commerce Department reported that sales of new single-family homes rose 13.8 percent last month, to a seasonally adjusted annual sales rate of 1.213 million units. The increase represented a recovery from a 10.9 percent plunge in sales in February.

Home sales were up in all areas of the country in March, led by a 35.7 percent surge in the West, followed by gains of 10.9 percent in the Midwest, 6.9 percent in the South, and 4.7 percent in the Northeast.

The government also reported that orders to US factories for big-ticket manufactured goods soared by 6.1 percent in March, the biggest gain in 10 months.

Two-thirds of the increase reflected a 71.1 percent jump in demand for commercial aircraft. The overall increase follows a 3.4 percent February advance. Manufacturing is expected to remain strong in coming months.