The U.S. Commerce Department reported on Thursday that the value of new factory orders climbed 2.6 percent m-o-m in January 2021, following a revised 1.6 percent m-o-m gain in December 2020 (originally a 1.1 percent m-o-m advance). That marked the largest increase in factory orders since last July 2020.

Economists had forecast a 2.1 percent m-o-m climb.

According to the report, orders for transportation equipment surged 7.7 percent m-o-m in January compared to a 0.8 percent m-o-m drop in December. Gains also were recorded in orders for electrical equipment, appliances, and components (+4.0 percent m-o-m), primary metals (+3.3 percent m-o-m) and fabricated metal products (+1.8 percent m-o-m). However, these advances were partially offset by declines in orders for machinery (-0.6 percent m-o-m) and computers and electronic products (-0.5 percent m-o-m).

Meanwhile, total factory orders excluding transportation, a volatile part of the overall reading, rose 1.7 percent m-o-m in January (compared to an upwardly revised 1.9 percent m-o-m gain in December), while orders for nondefense capital goods excluding aircraft, a measure of business spending plans, increased 0.4 percent m-o-m instead of advancing 0.5 percent m-o-m as reported last month. The report also showed that shipments of core capital goods jumped 1.8 percent m-o-m in January, rather than gaining 2.1 percent m-o-m as previously reported.

Overall, durable goods orders rose 3.4 percent m-o-m in January, while orders for nondurable goods grew 1.9 percent m-o-m.