WASHINGTON (AP) -- Orders to U.S. factories rose broadly in September, propelled by business spending on commercial airplanes, boats and machines. The Commerce Department said Wednesday that factory orders rose by 2.1 percent in September, the steepest increase since January. Orders were flat in August.
Business spending on big-ticket goods such as airplanes and heavy machines produced most of the demand. But consumer spending also rose by 1.0 percent, after running flat in August.
Excluding the volatile transportation sector, orders rose 0.4 percent, after gaining 1.3 percent in August.
Economists have worried that recession-weary consumers will not spend enough to keep factories moving as business spending subsides. Wednesday's report included some rare hints that the consumer economy may be improving.
Orders for household appliances were up by 3.9 percent, after falling by 4.9 percent in August. Demand for furniture grew by 1.1 percent, after gaining 10 percent in August.
Factory orders in September regained some of the strength they showed last winter, as manufacturing helped lift the nation out of its deepest recession in decades. Orders for costly, long-lasting goods grew by the most since January. So did overall transportation orders, with commercial airplane orders more than doubling and orders for ships and boats gaining 19.2 percent.
Heavy machines that handle metal, generate power and move assembly lines all saw higher demand.
Manufacturers also got a boost from government spending on military airplanes and communications equipment. Long-term investment in military goods increased by 8.5 percent, the most since January.
Some analysts noted that orders remain far below their pre-recession peaks.
Steven Wood of Insight Economics said in a research note that manufacturers are seeing "a moderate recovery, but it has been weak relative to the magnitude of its previous declines."
Factory orders plunged by 27 percent between July 2008 and March 2009 as the economy teetered. Since then, they have increased by 19 percent, leaving them 13.1 percent below the June 2008 peak, Wood wrote.
Photographic and corporate communications equipment orders were among the report's weak points. Orders in those categories fell by 18.6 percent and 21.0 percent, respectively.
Excluding defense and transportation, capital spending by businesses edged down by 0.2 percent. Capital spending is a proxy for businesses' longer-term investments.
