WASHINGTON DC, United States — US businesses increased their demand for industrial machinery, computers and autos in March, lifting factory orders for the fifth consecutive month.

Orders rose three per cent in March after a 0.7 per cent increase in February, the Commerce Department reported yesterday. A key category that signals business investment plans jumped 4.1 per cent after a small increase in February and a big decline in January. Excluding the volatile transportation sector, orders rose 2.6 per cent.

The March increase pushed total orders to US$462.9 billion, up 31.2 per cent from the recession low hit in March 2009.

Analysts noted that the March increase was partly driven by higher oil prices that increased the costs of petroleum products.

But the report also supported evidence that the manufacturing sector has been one of the strongest segments of the economy since the recession ended nearly two years ago. On Monday, the Institute for Supply Management reported that manufacturing activity rose for a 21st-straight month in April.

Joshua Shapiro, chief US economist at MFR Inc in New York, said the solid March increase in factory orders showed the January-March quarter ended with momentum, an encouraging sign for future economic growth.

A weak dollar is making US exports cheaper overseas and tax cuts are encouraging business investment in capital goods.

For March, orders for durable goods — items expected to last at least three years — rose 2.9 per cent. That’s slightly better than a preliminary estimate the government reported last week.

Demand for nondurable goods rose 3.1 per cent. Petroleum products increased 7.8 per cent. Much of that gain reflected higher prices.

Orders for transportation rose 6.2 per cent. Demand for autos increased four per cent, nearly double the 2.2 per cent rise in February. Automakers are benefiting from rising sales over the past several months.

Orders for commercial aircraft rose 0.9 per cent after much bigger increases in the previous two months.