Orders for long-lasting goods rose in February for a third month, while inventories and backlogs climbed by the most in more than a year, indicating the manufacturing rebound will keep propelling the recovery. The 0.5 percent increase in bookings for durable goods was in line with the median forecast of economists surveyed by Bloomberg News and followed a 3.9 percent gain the prior month, the Commerce Department said Wednesday in Washington. Excluding transportation equipment, orders advanced 0.9 percent, more than anticipated. Business spending on new equipment, inventory restocking and a pickup in global demand mean companies from Boeing to Owens-Illinois can look forward to sustained sales gains. A pickup in employment is needed to broaden the expansion as the economy heals from the worst recession since the 1930s. 'Manufacturing has and will continue to drive this recovery,' said David Semmens, an economist at Standard Chartered Bank in New York. 'Export demand will continue to grow, domestic orders continue to rise and the inventory liquidation cycle has stopped dragging on growth.' Economists anticipated a 0.6 percent gain in orders, according to the median of 77 estimates in a Bloomberg News survey, after a previously reported 2.6 percent jump in January. Forecasts ranged from a decline of 2 percent to a 2 percent increase. Excluding transportation equipment, orders were forecast to rise 0.6 percent, according to the survey median. The Commerce Department revised January data to show a 0.6 percent drop rather than the initially reported 1 percent decrease. Orders excluding defense equipment increased 1.6 percent and bookings for military gear dropped 4.5 percent. Last month's gain in orders was led by a surge in aircraft bookings and increasing demand for machinery and metals. Boeing, the world's second-biggest commercial-plane maker, said it received 47 orders in February, up from 10 a month earlier. Chicago-based Boeing last week said it will boost production in coming years to meet stronger demand as airlines rebound from the recession-induced travel slump. Bookings for non-defense capital goods excluding aircraft, a proxy for future business investment, increased 1.1 percent after dropping 3.9 percent the prior month. Shipments of those items, used in calculating gross domestic product, climbed 0.8 percent after a 1.9 percent decrease. Factories boosted durable-goods inventories by 0.3 percent, the biggest gain since December 2008. In a sign demand is starting to outstrip available resources, unfilled orders advanced 0.4 percent, the most since July 2008. Growing sales in the U.S. and abroad, and the need to replenish inventories are also helping companies such as Owens- Illinois, the largest U.S. maker of glass containers for food and beverages. 'We are starting to see the beginnings of a recovery, which we anticipate will extend through 2010 and 2011,' Chief Executive Officer Al Stroucken said in a presentation to investors on March 18. Stroucken said he expects 'volumes to recover due to destocking having run its course.' 