GO
Loading...

Aircraft Orders Cause Factory Orders to Climb 3% Higher

Source: Ford

New orders for U.S. factory goods rose sharply in February but a gauge of planned business spending slipped, suggesting factory activity continued to expand at a moderate pace.

The Commerce Department on Tuesday said orders for manufactured goods climbed 3.0 percent. Economists polled by Reuters had forecast orders advancing 2.9 percent.

(Click here to track the U.S. stock market reaction to this economic report.)

Factory orders were boosted by the aircraft industry, which is prone to sharp swings. Civilian aircraft orders surged 95.1 percent. U.S. manufacturer Boeing had previously reported orders in February for 179 aircraft, up from two a month earlier.

Gains were modest when stripping out more volatile categories. Orders excluding transportation equipment increased just 0.3 percent.

Orders for non-defense capital goods excluding aircraft—seen as a measure of business confidence and spending plans—declined 3.2 percent instead of the previously reported 2.7 percent drop. While often looked at as a core reading for orders, this measure has also been quite volatile in recent months. In January, it rose 6.7 percent, the biggest gain since March 2010, according to revised readings.

The Commerce Department also said orders for durable goods, manufactured products expected to last three years or more, rose 5.6 percent instead of the 5.7 percent gain reported last week.

Latest Special Reports

  • File photo: Participants at a hacking conference in Germany

    A series of high profile cyber attacks has created huge economic opportunity as businesses look to fend off future attacks.

  • Whether you're young and just getting started investing or moving closer to retirement, factoring in age will keep you ahead of the game.

  • Advisor-centric content with guest columns covering practice management, investment strategies and marketing/social media.

Slideshows