Some analysts suggest the manufacturing sector may be stabilising

Demand for big-ticket items manufactured in the US fell by less than had been expected in March.

Orders for durable goods, which are items expected to last more than a year, fell 0.8%, which was about half the fall that had been expected.

It followed an increase of 2.1% in February, which had been the first gain after six consecutive monthly falls.

Some analysts have suggested that the two relatively benign figures suggest the sector may be stabilising.

Manufacturers have been hit hard by a big drop in consumer spending both at home and from overseas customers.

"It is still impossible to tell whether the sharp slowing in the rate of decline of core orders in February-March is simply a correction after the horrors of the previous few, post-Lehman months, or the start of a genuine stabilisation," said Ian Shepherdson from High Frequency Economics.

Demand in the transport sector declined, with a 1.7% fall in demand for motor vehicles, although that was partly offset by rising demand for commercial and military aircraft.