Orders to U.S. factories for long-lasting manufactured goods rebounded in January, rising by the largest amount in six months, although much of the strength came from a big jump in airplane orders. A key category that signals business investment plans did manage a small gain.
Orders for durable goods increased 2.8 percent in January, the biggest increase since July. Orders were down 3.7 percent in December and 2.2 percent in November, the Commerce Department reported Thursday.
The 2.8 percent rebound in total orders was larger than had been expected but it was heavily influenced by a surge in demand in the volatile category of commercial aircraft, which soared 128.5 percent in January after having fallen 58.3 percent in December.
The stronger U.S. dollar and global weakness have hurt exports but economists are still optimistic that surging domestic demand will result in a sustained rebound in orders this year. Jennifer Lee, senior economist at BMO Capital Markets, said that orders should begin to increase as the supply backlogs caused by the West Coast port dispute start to clear.