New orders for manufactured durable goods increased by 0.9% in February, the Commerce Department reported Thursday. This defied economists’ expectations of a decline, signaling continued strength in the manufacturing sector.

Key Details of the Report

• The increase follows a revised 3.6% increase in January.
• Excluding transportation, new orders increased 0.3%.
• Nondefense capital goods orders increased 7.4%.

The report suggests that businesses are continuing to invest in equipment and technology, which is a positive sign for economic growth. However, some analysts remain cautious, citing concerns about rising inflation and its potential impact on future spending.

Impact on Markets

The positive durable goods orders report could provide a boost to investor confidence, although the overall market reaction may be tempered by ongoing concerns about the global economy.