WASHINGTON, May 13 (Reuters) - U.S. March machine tool demand rose strongly from February and also increased from a year ago, two trade groups said in a report released on Sunday.
The American Machine Tool Distributors' Association (AMTDA) and the Association for Manufacturing Technology (AMT) said total U.S. March machine tool demand stood at $371.10 million, a 34.9 percent surge from $275.04 million in February.
March demand also rose 1.4 percent from $365.89 million a year earlier in March 2006.
February demand was revised upward from $268.37 million reported a month ago.
In the first quarter of 2007, machine tool demand rose 7.1 percent to $945.27 million from $882.89 million estimated in the first three months of 2006.
"Strong March results have produced continued growth in the first quarter of this year. This pattern of steady growth is expected to continue," AMTDA President John Healy said in a statement.
March demand for metal cutting and forming tools soared by 71.7 percent in the West and grew 61.3 percent in the Midwest. It was up 30.1 percent in the Northeast and 12.7 percent in the Central region. In the South, demand rose 11.4 percent, according to the report.
On May 4 the Labor Department reported a 19,000 decline in U.S. April factory jobs. The Commerce Department also this month revised U.S. March durable goods orders to a 3.7 percent rise from a previously reported 3.4 percent gain.
Demand for machine tools, which are used to shape metal for products such as car engines and refrigerators, can give a sense of pace of manufacturing, as it reflects how much industries are investing in production equipment.
The machine tools report is generally based on a survey of about 200 manufacturers, distributors and importers of machine tools that represent 76 percent of the machine tool market.