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WASHINGTON (Reuters) – A key judge of U.S. manufacturing chromatic in March and new orders in Feb were stronger than initially thought, indicating a spirited works facet modify as the frugalness slowed in the prototypal quarter.

New orders for manufactured artefact meant to terminal at least threesome eld increased 2.5 proportionality after an upwardly revised 0.7 proportionality uprise in February, the Commerce Department said on Wednesday.

Durable artefact orders in Feb had been previously reportable to have dropped 0.6 percent, patch the uprise in March vex economists' expectations for a 2 proportionality advance.

While the inform -- which showed ascending revisions to key categories in Feb -- did not modify views that the frugalness slowed sharply in the prototypal threesome months of this year, it addicted that manufacturing continuing to power the recovery.

"It's evenhandedly evident that the industrial facet of the U.S. frugalness is the ontogeny utility and continues to be," said Neil Dutta, an economist at Bank of America Merrill Lynch in New York.

The feat forfeited a travel in the prototypal threesome months of the assemblage as harsh winter defy checked state and broad gasoline and matter prices weighed on consumer spending.

Government data on weekday is due to show ontogeny slowed to an annualized evaluate of 2.0 proportionality or modify inferior in the prototypal quarter, according to a Reuters survey. The frugalness grew at a rugged 3.1 proportionality evaluate in the ordinal quarter.

The durable artefact inform came as officials at the agent Reserve embattled to twine up a two-day gathering on monetary policy. The U.S. bicentric bank is most likely to regard the ontogeny slowdown as temporary.

FED TO STAY ON COURSE

The FRS is due to continue with its $600 billion polity bond-buying program, which ends in June, and restore its dedication to ultra-low welfare rates for "an extended period.

Orders for long-lasting manufactured artefact terminal period were buoyed by bookings for motor vehicles, installation equipment and aircraft.

Excluding transportation, orders chromatic 1.3 proportionality after a revised 0.6 proportionality acquire in February, which was previously reportable as a 0.3 proportionality drop. Economists had due this category to uprise 1.8 percent.

The evenhandedly strong manufacturing tone was captured by directive home contrivance concern Whirlpool Corp (WHR.N), which reportable a uprise in first-quarter acquire acquire chromatic to $169 meg from $164 meg a assemblage earlier.

Manufacturing has been bicentric to the economy's feat from the poorest ceding since the 1930s, modify though it constitutes inferior than 15 proportionality of scheme activity.

A weaker dollar, which effect a three-year low against a goal of currencies on Wednesday, is serving the sector.

The durable artefact inform showed non-defense top artefact orders excluding aircraft, a closely watched proxy for business spending, chromatic 3.7 proportionality terminal period after an upwardly revised 0.5 proportionality acquire in February.

"Concerns over top outlay triggered by imperfectness in the prototypal period of the lodge prove unfounded," said Michelle Girard, an economist at RBS in Stamford, Connecticut. "There is no communication that top outlay plans are existence substantially curtailed."

Shipments of non-defense top artefact excluding bomb chromatic 2.2 proportionality after advancing 0.4 proportionality in February. This factor goes into the calculation of the government's manoeuvre of large husbandly product.

Orders for direct metals chromatic 3.9 proportionality in March, patch machinery orders jumped 4.2 percent. However, orders for computers and electronic products fell, as did orders for subject equipment.

While it was likewise early for potential cater disruptions from the devastating seism and tsunami in Nihon to show in the March report, analysts expect the effect on the U.S. frugalness to be minimal.

(Editing by James Dalgleish)

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