In a good news-bad news situation for financial markets Thursday, U.S. durable goods bookings jumped in March, while U.S. unemployment claims remained very high.

U.S. durable goods were up 2.0% across the board, or 1.8% excluding the often-volatile transportation category. But jobless claims in the U.S. came in at 455,000 in the week of April 19.

“Nothing is more common than durable goods jumping around randomly, but this report moved orders into the plus column for Q1 as a whole and sets the stage for a post-war spring firming of the factory sector,” BMO Nesbitt Burns Inc, chief economist Sherry Cooper said in a report. “Smoothed orders data show the situation is gradually improving, which we regard as our baseline view.”

As for the jobless claims, Cooper said “We continue to believe this represents cost cutting and does not reflect forced layoffs that result from declining business activity. The market’s view, however, is that layoffs are bad, period.”

“The weak greenback probably underlies recent gains in manufacturing. A pick-up in spending would help reinforce a gradual turnaround in the hard-hit factory sector.”

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.”