WASHINGTON (Dow Jones)--Demand climbed for expensive goods in February, increasing at a rate higher than expected as bookings surged for civilian aircraft and defense capital equipment made the largest advance in four years.
Durable-goods orders rose 2.6% last month to a seasonally adjusted $215.77 billion, the Commerce Department said Friday. Durables fell by 8.9% in January, revised from a previously estimated 9.9% decline.
A key barometer of business spending - orders for non-defense capital goods excluding aircraft - fell by 2.3%, after rising 0.3% in January.
The median estimate of 22 economists surveyed by Dow Jones Newswires and CNBC was a 1.5% increase in durable goods during February.
A previous barometer on U.S. manufacturing, the Institute for Supply Management survey, showed growth in the sector for February. The private research group's manufacturing activity index went up to 56.7 from January's 54.8. Readings above 50 indicate expanding manufacturing activity. The report's prices index eased but remained at a high level, with a reading at 62.5 versus 65.0 in January.
Friday's durables report showed transportation orders climbed by 13.4% last month, after decreasing 29.2% in January. Orders for commercial planes rose 52.5% and military aircraft decreased 16.7%. Motor vehicles and parts fell by 3.3% last month. Excluding transportation, orders for other goods decreased 1.3%, after a 1.6% increase in January.
Demand fell last month by 6.3% for machinery, 1.9% for fabricated metals, 2.5% for primary metals and 3.2% for electrical equipment. Orders climbed 4.2% for computers and electronics.
Capital goods orders rose by 7.8% last month after decreasing 20.7% in January. Non-defense capital goods - items meant to last 10 years or more - increased 1.6% last month.
Defense-related capital goods orders shot up 104.1%, after falling 32.6% in January. It was the biggest climb since February 2002's 136.3% increase.
Orders for everything except defense goods increased 0.3% last month.
Durable-goods inventories of manufacturers decreased 0.5% last month. Unfilled orders rose 0.9%, and shipments increased 0.2%.