Another surge in aircraft led factory orders 1.0 percent higher in February. Orders for January were revised up from a 1.2 percent increase to a 1.5 percent gain on stronger core capital goods orders. While nondefense capital goods orders ex-aircraft slipped 0.1 percent in February, the trend remains solidly upward with core orders rising at a 9.4 percent three-month average annualized rate.
Factory orders rose 1.0 percent in February, supported by a jump in aircraft orders. The trend in core capital goods orders looks a bit better after upward revisions to January. Nondurable goods continue to trek higher.
Ex-Aircraft, Moderate Rise in Factory Orders
Another surge in aircraft led factory orders 1.0 percent higher in February. Orders for January were revised up from a 1.2 percent increase to a 1.5 percent gain on stronger core capital goods orders. While nondefense capital goods orders ex-aircraft slipped 0.1 percent in February, the trend remains solidly upward with core orders rising at a 9.4 percent three-month average annualized rate.
Business Spending on the Mend
Nondurable goods, which were not previously reported, increased 0.2 percent on chemical products. In addition to strengthening demand, a rebound in prices has helped nondurables rise ahead of durable goods over the past year.
Although orders still look weak relative to recent purchasing managers’ indices, today’s report offers additional evidence that business spending has improved over the first quarter.
