Durable goods orders rise after 6 straight drops

WASHINGTON (AP) – Orders to U.S. factories for big-ticket manufactured goods unexpectedly rose in February after a record six straight declines.

The Commerce Department said Wednesday that orders for durable goods - manufactured products expected to last at least three years - increased 3.4 percent last month, much better than the 2 percent fall economists expected. It was the first advance since July and the strongest one-month gain in 14 months.

Last month's strength was led by a surge in orders for military aircraft and parts, which shot up 32.4 percent. Demand for machinery, computers and fabricated metal products also rose.

Still, the rebound may be temporary given all the problems facing the economy, and a large drop in orders in January was revised even lower.

"Durable goods was firmer than expected but with the caveats of downward revisions and the bounce ... coming on the heels of several months of weakness," RBS Greenwich Capital analyst David Ader wrote in a note. "It's not having much of an impact (on the market) and we don't see an effort to interpret it as a sign the economic bottom is in."