WASHINGTON--The manufacturing sector continued its fragmented growth in February as the volatile defense and aerospace industries drove an overall gain despite slowdowns or weak improvements in several other categories.
Orders for manufactured goods increased 3.0% to $491.98 billion, the Commerce Department said Tuesday, reversing a revised 1.0% decline the prior month. February's gain matched economists' expectations.
Declines in orders for chemicals, machinery and computers were more than offset by a doubling of demand for civilian aircraft and parts and a 72.6% jump in defense-related orders.
That's emblematic of the fits and starts seen in the manufacturing sector and the economy as a whole during much of the recovery that began in 2009. Work at factories reached an all-time high again in February but the gains have been uneven.
The factory report measures demand for both durable goods--items such as refrigerators and cars designed to last more than three years--and products such as refined petroleum and processed foods that are utilized more quickly.
February nondurable goods orders, reported for the first time Tuesday, increased just 0.8%. Those softer products accounted for 53% of all factory demand during the month. Due to short production times, no distinction is made between nondurable orders and shipments.
The growth in the category was largely due to increased production at oil refineries. The rising cost of wholesale gasoline during the month helped boost output, which is measured in dollars.
Meanwhile, durable goods orders were revised to a 5.6% gain, down slightly from last week's estimate.
The highly volatile civilian aircraft category led the gain and automotive orders also rose. But excluding transportation, factory orders were up just 0.3%.
The spike in military spending could represent the government's effort to place orders ahead of across-the-board spending cuts that kicked in March. It continues an up-and-down pattern for the industry.
An opposite trend is emerging with a key measure of business investment. Orders for non-defense capital goods excluding aircraft, which is seen as the building blocks of companies, decreased 3.2% in February. That gave back part of the 6.7% gain in January. The category has flipped between growth and contraction each of the past four months.
The uneven factory growth appears likely to continue in March. A Monday report from Institute for Supply Management showed U.S. manufacturers notched a fourth consecutive month of expansion in March but the gains came at a slower pace than in February.
Total factory shipments, including durable and nondurable goods, increased 0.9% during February, compared with a 0.4% gain, the prior month, the Commerce said.
Orders for manufactured goods increased 3.0% to $491.98 billion, the Commerce Department said Tuesday, reversing a revised 1.0% decline the prior month. February's gain matched economists' expectations.
Declines in orders for chemicals, machinery and computers were more than offset by a doubling of demand for civilian aircraft and parts and a 72.6% jump in defense-related orders.
That's emblematic of the fits and starts seen in the manufacturing sector and the economy as a whole during much of the recovery that began in 2009. Work at factories reached an all-time high again in February but the gains have been uneven.
The factory report measures demand for both durable goods--items such as refrigerators and cars designed to last more than three years--and products such as refined petroleum and processed foods that are utilized more quickly.
February nondurable goods orders, reported for the first time Tuesday, increased just 0.8%. Those softer products accounted for 53% of all factory demand during the month. Due to short production times, no distinction is made between nondurable orders and shipments.
The growth in the category was largely due to increased production at oil refineries. The rising cost of wholesale gasoline during the month helped boost output, which is measured in dollars.
Meanwhile, durable goods orders were revised to a 5.6% gain, down slightly from last week's estimate.
The highly volatile civilian aircraft category led the gain and automotive orders also rose. But excluding transportation, factory orders were up just 0.3%.
The spike in military spending could represent the government's effort to place orders ahead of across-the-board spending cuts that kicked in March. It continues an up-and-down pattern for the industry.
An opposite trend is emerging with a key measure of business investment. Orders for non-defense capital goods excluding aircraft, which is seen as the building blocks of companies, decreased 3.2% in February. That gave back part of the 6.7% gain in January. The category has flipped between growth and contraction each of the past four months.
The uneven factory growth appears likely to continue in March. A Monday report from Institute for Supply Management showed U.S. manufacturers notched a fourth consecutive month of expansion in March but the gains came at a slower pace than in February.
Total factory shipments, including durable and nondurable goods, increased 0.9% during February, compared with a 0.4% gain, the prior month, the Commerce said.
