Partly reflecting a spike in orders for transportation equipment, the Commerce Department released a report on Thursday showing new orders for U.S. manufactured goods jumped much more than expected in the month of January.
The report showed factory orders surged up by 1.4 percent in January following a revised 0.7 percent increase in December.
Economists had expected factory orders to climb by 0.7 percent compared to the 0.4 percent drop originally reported for the previous month.
The bigger than expected jump in factory orders came as orders for durable goods shot up by 1.6 percent, unchanged from the previously reported figure. Orders for transportation equipment led the way higher, soaring by 3.4 percent.
The report showed orders for non-durable goods also jumped by 1.2 percent in January after inching up by 0.1 percent in December.
The Commerce Department also said shipments of manufactured goods surged up by 1.2 percent in January following a 0.7 percent increase in December.
Inventories of manufactured goods also climbed 0.7 percent in January after rising by 0.4 percent in the previous month.
With shipments jumping by more than inventories, the inventories-to-shipments ratio edged down to 1.45 in January from 1.46 in December.
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