American economy watchers got some decidedly mixed news Thursday. Although durable-goods orders rose unexpectedly in March, initial jobless claims hit the highest level in a year.

The U.S Commerce Dept. reported that orders for durable goods rose 2% to US$173.60 billion last month after a revised 1.5% drop in February.

Economists had anticipated continued weakness in March.

The March durable goods report indicated orders for non-defence capital goods rose by 1.8% after having fallen 5% in February.

Defence orders posted another double-digit gain, rising by 12% in March after a 36.5 % February advance.

Orders for transportation equipment, including new cars and trucks, rose by 2.4% in March, although orders for commercial aircraft fell by 12.6% . Other categories showing strength included machinery and computers.

Meanwhile, workers filing first-time applications for unemployment benefits rose 8,000 to 455,000 last week. The four-week moving average, which smoothes out weekly fluctuations, also rose to a one-year high of 439,250.

On Wednesday, the Federal Reserve’s “beige book” noted the continuing lackluster pace of economic activity in March and April. The survey of business conditions concluded it is “too early to ascertain the full effect of the war on both consumer and business confidence.”

Five of the 12 districts reported weaker growth than in February; only one was upbeat, observing “modest growth.” The remainder said conditions were “mixed or soft.”