U.S. Factory Orders Rise 0.3% in February

U.S. factories saw orders bounce back a bit in February after a decline in January.

But a report on March factory activity in the Chicago area showed a drop, raising new concerns about the health of the manufacturing sector.

The Commerce Department said Wednesday that orders placed with factories increased by a modest 0.3% in February, compared with a drop of 0.9% in January.

Although February’s rebound wasn’t as strong as the 1.5% increase economists were forecasting, it was still encouraging that factory orders managed to recover some ground.

“The manufacturing recovery is continuing, and it is moderate,” said Clifford Waldman, an economist at Manufacturers Alliance/MAPI, a research group.

Demand for durable goods -- costly manufactured products such as automobiles, household appliances and computers -- rose by 2.5% in February. That was an improvement from the 2.6% decline registered in January and marked the biggest increase since October.

But nondurable goods, such as food and clothing, fell by 2% in February, compared with a 1.2% increase in January.

The March report on Chicago-area manufacturing, issued Wednesday by that region’s chapter of the National Assn. of Purchasing Management, said the group’s index of activity fell to 57.6 last month from 63.6 in February. Economists had expected a reading of 61.5.