Orders for U.S. Durable Goods Increase on Surge in Aircraft

Orders for U.S. durable goods climbed in January as demand for aircraft rebounded after plunging the prior month.

Bookings for goods meant to last at least three years rose 2.7 percent after a 0.4 percent drop in December that was smaller than previously estimated, figures from the Commerce Department showed today in Washington. Orders excluding transportation equipment unexpectedly dropped, reflecting a recurring pattern of declines in capital goods in the first month of a quarter.

Manufacturers from Intel Corp. to Navistar International Corp. are forecasting rising demand as firms in the U.S. and abroad ramp up investment. While factories remain a mainstay of the recovery, limited improvement in the labor and housing markets helps explain why the Federal Reserve is forging ahead with a plan to bolster the economy.

“The manufacturing sector continues to be a main driver of the economy,” said John Herrmann, a senior fixed-income strategist at State Street Global Markets LLC in Boston. “We see a more moderate period of growth” for factories in coming months, he said.

Another report showed fewer Americans than forecast filed claims for unemployment insurance last week, indicating an improving labor market. Applications for jobless benefits decreased by 22,000 to 391,000 in the week ended Feb. 19, according to figures from the Labor Department.