US factory orders up 3 per cent in February, best gain in 5 months, but investment demand down

WASHINGTON – U.S. factories rose sharply in February from January, helped by a surge in demand for volatile aircraft. The gain offset a drop in orders that signal business investment.

The Commerce Department says factory orders rose 3 per cent in February, up 1 per cent decline in January. It was the best showing in five months.

Orders for all durable goods, which are products expected to last at least three years, jumped 5.6 per cent. Orders for nondurable goods, such as processed food and clothing, edged rose 0.8 per cent.

Still, core capital goods, which include machinery and equipment orders, fell 3.2 per cent. The decline followed a 6.7 per cent surge in January, the largest in nearly three years. Economists closely watch these orders because they signal business investment plans.

News from © The Associated Press, . All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.

Join the Conversation!

Want to share your thoughts, add context, or connect with others in your community? Create a free account to comment on stories, ask questions, and join meaningful discussions on our new site.

Leave a Reply

The Associated Press

The Associated Press is an independent global news organization dedicated to factual reporting. Founded in 1846, AP today remains the most trusted source of fast, accurate, unbiased news in all formats and the essential provider of the technology and services vital to the news business. More than half the world’s population sees AP journalism every day.