The Associated Press

WASHINGTON - Factories saw demand for big-ticket goods rebound in February, good news for the country's economic health and for manufacturers who have struggled to get their piece of the business recovery.

The Commerce Department reported Wednesday that orders for "durable" goods - costly manufactured products that are expected to last at least three years - rose by 2.5 percent last month. That was an improvement from the 2.7 percent drop registered in January and represented the largest increase since October.

February's performance was better than economists were expecting. They were calling for a 1.2 percent rise in durable-goods orders.

The rebound in durable-goods orders in February was led by stronger demand for transportation equipment, including cars and airplanes. Orders for those goods jumped by 9.9 percent in February, compared with a 10.5 percent decline in January. Last month's rise was the largest since July 2002.

David Huether, chief economist at the National Association of Manufacturers, said the report shows that "the manufacturing sector is continuing to gain ground and emerge from its three-year-long slump."

Orders for computers, communications equipment, machinery and primary metals, which includes steel, all posted gains in February. But orders for fabricated metals and electrical equipment declined.