12:43 PM EDT, 03/26/2024 (MT Newswires) -- US durable goods orders rose more than projected last month as the civilian aircraft component rebounded from January's plunge that Jefferies said reflected the impact from a Boeing (BA) 737 plane panel ripping off in the middle of a flight.

Orders for tangible items with an average life of at least three years advanced 1.4% sequentially to $277.93 billion in February following a downwardly revised 6.9% decrease in January, the Census Bureau said Tuesday. The consensus estimate was a 1% increase, according to a survey compiled by Bloomberg.

New orders for transportation equipment increased 3.3% last month after plunging about 18% in January, the official report showed. Nondefense aircraft and parts jumped nearly 25%, reversing direction from the month prior's 63.5% decline. Defense aircraft gained 9.8%, while motor vehicles and parts rose 1.8%, both turning positive sequentially.

"A decline is typical in January after air show season is over, but the drop in demand was amplified by the problems with the 737 MAX models following the Alaskan Airlines door blowout incident in early January," Jefferies US Economist Thomas Simons said. Boeing booked zero net new orders in January, with three gross orders offset by an equal number of cancelations.

Alaska Air Group (ALK) is the parent of Alaska Airlines.

Excluding transportation, new orders grew 0.5% last month, outpacing the Bloomberg estimate for a 0.4% gain. Machinery and primary metals orders rose by 1.9% and 1.4%, respectively, while computers and electronic products fell 1.4%, the government data showed.

"Overall, the environment for investment in machinery remains challenged by high interest rates and uncertainty surrounding the timeline for potential rate cuts," Simons said.

Nondefense capital goods rose 4.4%, while the defense component dropped by nearly 13%. Shipments of manufactured durable goods increased 1.2% in February following a 0.8% decrease the prior month.

Inventories were up 0.3%, according to the Census Bureau.