Factory orders hit four-year high

Orders for durable goods, which make up more than half of total factory demand, were upwardly revised to 3.2 percent in January, from an initial report last week of a 2.7 percent gain, according to the report. 

Demand for nondurable goods such as paper and food rose 3.1 percent in January, the same as the December increase.

Orders for non-defense capital goods, excluding aircraft, fell 6.2 percent in January, the biggest decrease since January 2009, a figure that reflects business investment. 

Regardless, investors see the decrease as temporary and are expecting businesses to take advantage of a tax break that allows write-offs for 100 percent of all capital equipment purchases made this year.

Non-defense airplane bookings rose to $7.4 billion in January, up from $141 million the prior month, an increase of more than 5,100 percent. 

There were declines in several sectors, including a 12.6 percent drop in machinery orders and a 5.9 percent fall in computers and electronics.

The manufacturing sector, which has largely fueled the economic recovery so far, is staying the course, with other reports showing factories expanding at the fastest pace in more than six years, according to a March 1 report by the Institute for Supply Management.

U.S. companies are benefiting from gradually increasing domestic demand and growing exports.