WASHINGTON (AP) – Orders to U.S. factories for long-lasting manufactured goods rose in April by the most since January. But much of the strength came from a surge in the volatile category of commercial aircraft. A key category that tracks business investment fell for a third straight month, a sign that manufacturing remains under stress.
Demand for durable goods jumped 3.4 percent after a 1.9 percent gain in March, the Commerce Department said Thursday. Orders in the closely watched category that serves as a proxy for business investment fell 0.8 percent after a 0.1 percent decline in March and a 2.1 percent plunge in February.
Manufacturing has been under pressure as weak global demand and a strong dollar have hurt exports and falling oil prices have triggered cutbacks at energy companies.
The rise in last month’s orders was led by a 65 percent surge in demand for commercial aircraft – a category that is extremely volatile from month to month.
Orders for motor vehicles and parts rose 2.9 percent, rebounding from a 3.2 percent drop in March. Total orders in all transportation categories were up 8.9 percent. Excluding transportation, overall orders would have been up a modest 0.4 percent.