Test cables run past seats in the passenger cabin of the first Boeing 787 with the interior installed. Orders to U.S. factories posted a moderate increase in April thanks to a surge in demand for commercial aircraft. (AP Photo/Elaine Thompson, file)

Associated Press | Orders to U.S. factories posted a moderate increase in April as a big
surge in demand for commercial aircraft offset weakness in a number of
other areas.

In the durable goods categories, transportation orders shot up 15.8
percent, reflecting a huge 228.1 percent increase in orders for
commercial aircraft. This volatile category had fallen by 71.1 percent
in March.

The rebound resulted from a better month at Boeing Co.,
which booked orders for 35 new 777 planes in April. Last year, Boeing
was cutting production. But with demand now rising as the global economy
recovers, Boeing has said it plans to speed up production of the 777 — as
well as its large 747 — next year.

The Commerce Department said Thursday that orders for manufactured
goods increased 1.2 percent in April, a slowdown from a 1.7 percent rise
in March. Excluding transportation, orders actually fell 0.5 percent,
the poorest showing in 13 months. However, that drop followed a big 3.8
percent surge in March which had been the largest advance in six years.

So
far in this recovery, the manufacturing sector has been one of the star
performers, helped by a strong rebound in domestic demand and rising
export sales. However, economists worry that the debt crisis in Europe
could slow sales in one of America’s biggest overseas markets.

The
1.2 percent April increase in orders was the slowest advance since
orders had risen by just 0.4 percent in February and also fell below
economists’ forecasts.

Demand for durable goods, items ranging
from airplanes to appliances that are expected to last at least three
years, rose 2.8 percent, slightly lower than the 2.9 percent the
government estimated in a preliminary report last week.

Demand for
nondurable goods, products ranging from food and clothing to chemicals
and gasoline, edged down 0.1 percent in April after a big 3.1 percent
increase in March.