U.S. factories saw demand for their products rebound in March, following a two-month slump.

The Commerce Department reported Friday that orders placed with U.S. manufacturers rose 1.4 percent in March. That was an improvement from the 0.9 percent dip reported in February and the 2.3 percent drop in January.

The latest snapshot of manufacturing activity was better than many economists were forecasting. They were predicting a smaller, 0.2 percent rise in orders.

Most of the pickup in March came from “nondurable” goods _ a broad category including food, paper products, and petroleum and coal products. Orders for nondurables rose 2.6 percent in March, following a 1.1 percent drop in February. Higher prices factored into the rise.

Meanwhile, demand for “durable” goods, big-ticket items, including airplanes, machinery and cars, edged up 0.1 percent in March, compared with a 0.6 percent decline in the previous month.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

WASHINGTON (AP) _U.S. factories saw demand for their products rebound in March, following a two-month slump.

The Commerce Department, in a new report Friday, says orders placed with U.S. manufacturers rose 1.4 percent in March. That was an improvement from the 0.9 percent dip reported in February and the 2.3 percent drop in January.

The latest report on manufacturing activity was better than many economists were forecasting. They were predicting a smaller, 0.2 percent rise in orders.