By Armando Duke

(AXcess News) Houston - Durable goods orders in January climbed an unexpected 3%, according to the latest US Department of Commerce Report.  While the gain was far more than expected, durable goods orders flew because of an unexpected gain in the sale of airplanes.

Economists were expecting to see orders for durable goods increase 1.5% in January.  Still, the increase was the largest gain for the US economy since last July.

Yet if there hadn't been $157 billion in orders for civilian aircraft in January, durable goods orders would have actually declined 0.6%.

The drop in durable goods orders, less the sale of aircraft, was in stark contrast to the 2% gain over the previous two months.

Durable goods are made up of big ticket items meant to last three years or more.

If you examine durable goods orders over the past six months, orders are up, with capital equipment showing a 7.6% increase on an annualized basis compared to a sharp 44% drop the prior year.

Much of the demand for durable goods is coming from overseas, yet US manufacturers have been depleting inventory levels which are now at a point where they're going to have to restock.  A surge in orders is likely as a result, though manufacturers are still reluctant to rehire workers, opting instead to get as much productivity out of their remaining employees as possible and if needed, hire temporary workers in order to meet demand.