US durable goods orders up 1.8% in January

US durable goods orders rose a little more than expected in January, according to data from the Commerce Department, almost entirely on the back of a surge in commercial aircraft orders.

Durable goods orders were up 1.8% from the previous month, when they dropped 0.8%. Economists had been expecting a 1.7% increase.

The jump was driven by a 70% rise in passenger plane orders and a 60% increase in orders for fighter jets and related military goods.

Excluding transport, new orders fell 0.2%, missing expectations for a 0.5% jump.

Meanwhile, demand in a category that tracks business investment plans dropped 0.4%, marking its first fall since September.

Pantheon Macroeconomics said: "We hoped for better, but we are not unduly disappointed, and these data do not change our core view that the manufacturing sector and capital spending are recovering quite strongly as the hit from the collapse in oil sector capex begins to reverse. The headline was boosted by a rebound in both aircraft orders, both defence and civilian, though we expected a bigger increase in the latter.

"The 0.4% dip in core capex orders comes after three straight gains totalling 3.3%, so the upward trend in place since last summer remains intact."