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Increase in durable goods orders three times higher than expected

Increase in durable goods orders three times higher than expected
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Orders for durable, long-term goods made in the U.S. increased by 3.4 percent in January, nearly three times higher than the previous month, according to a report released by the U.S. Census Bureau on Thursday.

According to the report, this is the ninth consecutive month in which new orders for durable goods have increased. In December and November, the orders for durable goods increased by less than 1.5 percent

The reported increase bodes well for U.S. manufacturers, who had seen orders for durable goods fall dramatically last spring as the coronavirus took hold in the country.

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New orders for nondefense aircraft and parts saw the highest increase by far between December and January, shooting up by 389.9 percent. Between November and December, orders for nondefense aircrafts fell by 56.7 percent.

Economists Oren Klachkin and Gregory Daco of Oxford Economics said in a research note that durable goods are "putting the pandemic in the rearview mirror," according to a report by The Associated Press.

“Factory activity will expand solidly in the near term, driven by hearty consumer demand for goods and inventory restocking," Klachkin and Daco said, adding that President BidenJoe BidenFederal Reserve chair: Economy would have been 'so much worse' without COVID-19 relief bills Biden to meet Monday with bipartisan lawmakers about infrastructure Jill Biden gives shout out to Champ, Major on National Pet Day MORE's $1.9 trillion stimulus bill will likely “pad consumers’ wallets and buoy the near-term outlook.″