WASHINGTON D.C.: A report from the Commerce Department released this week indicated that due to a decline in civilian aircraft bookings, overall orders for US-manufactured goods fell in January.
However, increases in machinery and a range of other products suggested that the manufacturing sector could be recovering.
The report also showed that inventories remained unchanged, as well as a recovery in shipments of manufactured goods is underway after two consecutive monthly declines.
Economists polled by Reuters had forecast orders declining 1.8 percent throughout the US. After increasing 1.7 percent in December, factory orders dropped 1.6 percent, but orders increased 4.3 percent year-on-year in January.
Due to the Federal Reserve's ongoing interest rate hikes, which will continue into summer, manufacturing is unlikely to recover quickly.
The strength of the US dollar against the currencies of the country's main trade partners and softening global demand have also negatively affected manufacturing.
After a 15.8 percent surge in December, falling factory orders caused a 13.3 percent decline in transportation equipment in January, while transport equipment orders were dragged down by a 54.5 percent fall in civilian aircraft orders, and motor vehicle orders increased by 1.3 percent.
Additionally, orders for machinery rose 1.6 percent, while computer and electronic product orders increased by 0.6 percent, and electrical equipment, appliances and components witnessed a rise of 1.3 percent.
Due to an increase in unfinished work for computers and related products being offset by decreases in consumer goods, incomplete orders at factories remained unchanged.
According to the Commerce Department, orders for non-defense capital goods, excluding aircraft, considered a measure of business spending plans on equipment, recovered 0.8 percent in January as reported last month.
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