WASHINGTON – New orders for big-ticket manufactured goods dropped sharply last month due to a plunge in demand for commercial aircraft. But excluding the volatile transportation category, orders rose by the most since the recession began.
The report is the latest sign that the once-battered manufacturing sector is now a driving force behind the economic recovery. U.S. factories are benefiting from overseas sales and a sharp increase in business spending.
The Commerce Department says new orders for durable goods, or those expected to last three years, dropped 1.3 percent in March. Analysts expected a 0.3 percent increase, according to a survey by Thomson Reuters.
Excluding the transportation sector, new orders rose 2.8 percent, much more than economists forecast and the most since December 2007.