Manufacturing sector remains weak: Durable goods orders drop 2.8% in Feb.

WASHINGTON - Orders to U.S. factories for long-lasting manufactured goods fell in February with a key category that tracks business investment dropping by the largest amount since December.

Orders for durable goods fell 2.8% in February following a 4.2% increase in January, the Commerce Department said Thursday. Commercial aircraft, a volatile category, fell 27.1% after surging 48.6% in January.

Orders in a category which serves as a proxy for business investment spending fell 1.8% after a 3.1% rise in January. It was the biggest decline in the investment category since a 3.5% drop in December.

Manufacturing had a tough year and prospects remain uncertain for 2016. The sector is being hurt by economic weakness in major export markets and a strong dollar.

The rising value of the dollar against other currencies makes U.S. goods less competitive in foreign markets.

The large drop in demand for commercial aircraft reflected weakness in orders at airplane giant Boeing. Demand for military aircraft and parts fell 29.2% in February after a 97% surge in January.

The weakness in demand for nondefense capital goods excluding aircraft, the category used as a proxy for business investment, reflects in part trouble in the energy industry, which has suffered cutbacks and layoffs because of the big plunge in oil prices over the past year.

For February, orders for machinery fell 2.6% while demand for appliances and other electrical equipment dropped 2.8%. Demand for computers rose 1.3% while orders for communication equipment fell 2.3%.