Orders for Durable Goods Up 3.3% After Record Jan. Plunge

A rebound in automobile orders during February helped push total durable goods orders up by 3.3% after a revised record plunge of 10.7% in January, the Commerce Department said today.

The January orders fall, previously reported as a 10.5% drop, was primarily a result of auto makers’ trimming production temporarily because of weak sales at the end of 1989.

The industry hired workers back in February and boosted output after introducing a round of financing incentives to help dealers reduce stocks of unsold cars.

Defense industry orders also increased sharply in February, but aircraft orders fell for a second straight month, leaving the overall rise in the durable goods orders total below economists’ expectations of a 4.8% increase.