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.