U.S. factory orders rose in February, fueled by strong demand for industrial machinery and commercial aircraft, the government reported Wednesday. It was the 10th increase in 11 months as manufacturing provides critical support for the economic recovery, but there were signs in the report that the boost manufacturing has provided to the economy may be fading. The Commerce Department said factory orders rose 0.6 percent last month, slightly higher than analysts had expected, but still far below January's 2.5 percent jump and the smallest gain since August 2009. Manufacturer inventories rose 0.5 percent, a figure that might disappoint economists, who are hoping to see stockpiles grow rapidly as a sign of confidence in future sales. A strong rise in inventories also would give a healthy boost to the economic recovery. In January, factory inventories rose by only 0.3 percent. Orders for durable goods (expensive manufactured items) rose 0.6 percent in February. Machinery orders jumped 5.1 percent, driven by higher demand for heating and air-conditioning equipment and turbines and other power-generation gear. Orders for commercial aircraft jumped almost 33 percent last month, but the auto industry continued to struggle, with orders for vehicles and parts declining by 1.7 percent, the second consecutive monthly drop. Orders for non-durable goods, like chemicals, clothes, and food, rose 0.3 percent in February, led by food products and chemical orders, particularly pesticides and fertilizers.
