According to the latest figures released, the total factory orders in the United Sates have recorded an increase of 3 per cent during the month of February, indicating that the world's largest economy is recovering from an economic downturn.

A Commerce Department report showed today in Washington that the increase of 3 per cent is the highest recorded in five months and comes after a fall of 1 per cent in the month of January. In a Bloomberg survey, a median of 64 economists had predicted a 2.9 per cent rise in factory orders in the American economy.

The data showed that the growth in factory orders was mostly due to increased demand for motor vehicles and commercial aircraft in the country. The demand for durable goods increased 5.6 per cent during the month in the country, giving a boost to the factory orders. Experts say that high auto sales in the country and strengthening home construction market has also increased sales and orders for manufacturers.

American businesses are increasing corporate investment and inventory rebuilding has increased production in the country as the domestic demand and export market have shown signs of improvement.