Backlog is one of the Commerce Department's official predictive indicators of the economy and this was the 12th decline in 13 months.

The value of short interest as a predictive indicator of market bullishness or bearishness has been called into question in recent years.

He added that the rise in durable goods orders, which most economists regard as a predictive indicator, "points to a pretty robust recovery in manufacturing."

But another element of the report, unfilled orders, which is also considered a predictive indicator, fell last month.

Unfilled orders, a predictive indicator, fell 1 percent last month to $428.76 billion, the 26th decline in the past 31 months.

The housing report also showed that permits issued for new homes, a predictive indicator, climbed 4.2 percent in February, to a rate of 1,160,000.

And while stock prices have been designated an official predictive indicator of the economy's course, recessions have sometimes humbled the most sophisticated forecasters.

Last week, the business-sponsored research group reported that its index of predictive indicators, formerly compiled by the Commerce Department, also moved up for the second straight month.

Such discipline is a valuable predictive indicator of success both in college and life.

Shipments are considered a gauge of current economic conditions, while new orders and unfilled orders, or backlogs, are predictive indicators.