Durable goods orders rose in January

WASHINGTON, Feb. 24 (UPI) -- U.S. durable goods orders rose 2.7 percent to $200.5 billion in January, the Commerce Department said Thursday.

Economists had predicted a 2.9 percent increase in new orders in the month, as manufacturing is expected to respond to December's upswing in consumer spending.

New orders for goods designed to last at least three years rose after three months of declines.

Excluding big ticket transportation items -- planes, trains and ships -- new orders rose 3.6 percent. Excluding defense spending, factory orders rose 1.9 percent.

Backlogged orders also rose, climbing 0.5 percent to $829.4 billion. Shipments of durable goods, up four of the past five months, rose 0.3 percent to $202.9 billion.

Inventories among U.S. manufacturers of durable goods rose for the 13th consecutive month, climbing 0.7 percent or $2.2 billion, to $324.8 billion. Inventories in transportation had the largest increase, rising 0.7 percent or $0.6 billion to $86.9 billion, the report said.