US factory orders rebound in February

US factory orders are up 1.6 per cent to $US488.8 billion, following two months of declines, US government figures show.

US factory orders have risen after two straight months of declines, the government says in a report, adding to signs of improvement in the manufacturing sector.

New orders for manufactured goods rose 1.6 per cent from January to $US488.8 billion ($A530.01 billion), the Commerce Department said.

January's decrease was revised to 1.0 per cent from the prior 0.7 per cent decline.

The February orders came in well above analysts' average estimate of a 1.1 per cent increase.

Excluding transportation equipment, which tends to be volatile month-over-month, new factory orders rose 0.7 per cent.

Orders for durable goods, which account for almost half of factory orders, climbed a solid 2.2 per cent after two months of declines.

Leading the gain in durable goods were transportation equipment orders, which jumped 7.0 per cent to $US71.4 billion.

Orders for non-durable goods rose 1.0 per cent to $US259.7 billion.

The data were the latest to point to modestly accelerating growth in the manufacturing sector. On Tuesday, the Institute for Supply Management reported manufacturing activity picked up in March despite severe winter weather in parts of the country.

The ISM's purchasing managers index rose to 53.7 from 53.2 in February. A reading above 50 denotes expansion.


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Published 3 April 2014 7:20am
Updated 3 April 2014 7:24am
Source: AAP

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