Aircraft demand pushes factory orders up
WASHINGTON — U.S. businesses increased their orders in January, although a key component that tracks business investment spending fell for the first time in four months.
Factory orders increased 1.2 percent, led by a jump in demand for aircraft, the Commerce Department reported Monday. Orders had risen 1.3 percent in December.
A category that serves as a proxy for business investment edged down 0.1 percent in January after three months of solid gains. It was the first setback since a 1.5 percent decline in the category in September.
American manufacturing has been under stress for nearly two years as a strong dollar cut into export sales and a big plunge in oil prices triggered cutbacks by energy companies. Manufacturers are expected to see stronger sales in 2017.
Demand for durable goods, items ranging from bicycles to battleships that are expected to last at least three years, rose 2 percent. Demand for nondurable goods, everything from paper products to chemicals and food, rose 0.4 percent in January after a 3.4 percent jump in December.
The strength in January reflected a surge in orders for commercial aircraft, which jumped 69.8 percent, and a 62.2 percent rise in orders for military aircraft. Demand for motor vehicles and parts rose 0.8 percent, while orders for ships and boats declined 33.7 percent.
On Wall Street Monday, U.S. stocks finished lower for the second time in the last three trading days. Banks gave back some of their recent gains after a jump in interest rates last week sent them sharply higher.
Mining and chemical companies’ shares declined after China cut its economic growth forecast, and airlines slumped after Delta said its business isn’t improving as fast as it hoped.