U.S. factory orders climbed less than expected during April, but a gauge of spending by businesses on capital equipment rose for a second month in a row.

Orders for manufactured goods increased 0.3%, following a revised 4.1% gain in March, the Commerce Department said today. March factory orders were originally reported 3.1% higher. The 0.3% April climb was surprisingly weak. Wall Street analysts had expected an increase of 0.7%.

Meanwhile, a yardstick for business investment demand — nondefense capital goods orders excluding aircraft — rose 2.1% in April, after climbing 4.6% in March and dropping 2.4% during February.

Today’s report said inventories of manufacturers rose 0.5% in April after going up 0.2% in March and 0.1% in February. Demand for overall manufactured goods in April was softened by the transportation sector. Transportation orders fell 1.6%, after a 13.6% surge in March. Non-defense aircraft and parts orders fell 10.7%, while defense aircraft and parts orders increased 18.7%. Ships and boats tumbled 23.4%. Orders for motor vehicle bodies and parts fell by 3.3%.

Excluding transportation orders, overall factory orders would have been 0.7% higher in April. Capital goods orders were unchanged in April.

Defense capital-goods orders climbed 1.5%. Without defense orders, overall factory orders would have gone up 0.3%. Defense capital goods industries include, among others, communications equipment, aircraft and missiles.

Demand for all nondefense capital goods — business equipment meant to last 10 years or more — dipped 0.1% in April.

Consumer-goods orders fell 0.2%, reflecting a 3.1% increase in consumer durable goods orders and a 1.0% drop in consumer non-durables.

Orders increased in April by 1.8% for computers and electronic products, 3.7% for electrical equipment, 3.9% for primary metals, and 4.3% for fabricated metals. Demand fell 1.5% for machinery. The report showed factory shipments increased by 0.8%. Unfilled orders were 1.8% higher.