Durable goods orders rise 5.7% in February

New orders for manufactured durable goods increased $12.4 billion or 5.7% in February to $232.1 billion, the U.S. Census Bureau said Tuesday.

Orders have increased five of the past six months. February's rise followed a 3.8% decline in January.

Durable goods are manufactured items expected to last at least three years.

Excluding transportation, new orders fell 0.5%. Excluding defense, new orders increased 4.5%. Transportation equipment, up two of the last three months, drove February's increase, rising $13.3 billion or 21.7% to $74.4 billion. This was led by non-defense aircraft and parts, which increased $9.0 billion.

One downside in the report: Orders for goods that signal business investment plans fell in February by the largest amount in seven months, although the decline followed a strong January and may prove to be a temporary setback.

Orders for those core capital goods declined 2.7%. Demand weakened for machinery and communications equipment. The decline followed a 6.7% surge in January, biggest one-month gain in nearly three years.

Contributing: Associated Press