US factory orders on the rise - KWWL - Eastern Iowa Breaking News, Weather, Closings

US factory orders on the rise


Orders to American factories rose in February as businesses bought more machinery and equipment.

The U.S. Commerce Department says orders to factories increased 1.3 percent in February following a 1.3 percent decline in January.  Orders for core capital goods, a good measure of business investment plans, rose 1.7 percent, which was better than a preliminary estimate made last week.

Factory orders have been steadily rising since the recession ended.  Orders totaled $468.4 billion in February, just 3.4 percent below the previous peak hit in 2008.

Orders rebounded in February after a January decline that followed the expiration of a tax credit on equipment purchases.  Economists believe investment spending will do well even without the tax break.

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