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Further signs that the IT industry is on the rebound can be found in the durable-goods report issued by the Commerce Department on Wednesday. New orders for computers and related products rose a seasonally adjusted 2.1% in February. In the past year, new orders for IT products rose 19.6%. By comparison, new orders for all durable goods increased 2.5% in February but only 8.0% for the previous 12 months.
Orders for communications equipment continued to climb in February, increasing 5.5%. In January, new communications-equipment orders soared 65.1%. Economists say as the economy grows and businesses expand, they need new telephones and communications equipment to equip new offices and factories.
Another sign that the IT industry is experiencing a rebound: Inventories for computers and related products decreased 0.8% in February and 5.8% since the previous February. As inventories become depleted, manufacturers often increase production--an encouraging economic signal.