NEW YORK (CNNMoney.com) - Orders for durable goods bounced back in February, the government said Friday, exceeding Wall Street's forecast for demand for big-ticket items.

It was the fourth increase in the last five months for the index.

The Census Bureau reported that new durable goods orders rose 2.6 percent in the month, compared with a revised 8.9 percent decline reported in January. Economists surveyed by Briefing.com had forecast that orders would rise just 1.3 percent in the month.

But stripping out the volatile transportation sector, orders decreased 1.3 percent in February.

"Some see the widespread weakness outside transportation as discouraging," said Zoltan Pozsar of Economy.com. "But orders are still running far above average given the last few months of increases."

Orders excluding transportation were up 8.3 percent year-to-date over 2005.

Transportation orders were a huge growth driver in February, the government said, with a 13.4 percent increase to $63 billion. Civilian aircraft orders provided the bulk of the growth, surging 52.5 percent last month. In January, civilian aircraft orders had pulled the overall index down, falling 70 percent.

The February report also showed a 1.6 percent rise in orders for non-defense capital goods, which is often used as a gauge for future business spending.

Excluding aircraft, which can distort the number given seasonal variation, orders fell 2.3 percent in February.

Companies have been slow to purchase new equipment over the last few years, as reflected in sluggish capital goods orders.

"Despite February's numbers, the outlook for business capital spending remains favorable," said Pozsar. "Inventories remain low and capacity utilization is very high -- companies are going to have to ramp up their expenditures. On top of this, they're sitting on piles of cash."

He said he expects strong durable goods orders in months ahead.

New defense orders for capital goods increased 104.1 percent to $9.4 billion. Orders were down 32 percent in January and up 1.4 percent in December.

Orders for computers and electronics rose 4.2 percent while motor vehicle orders fell 3.3 percent.

_______________________________

Wholesale prices took their biggest tumble in nearly three years, led by energy prices. Full story here.

With $100 billion worth of branded drugs losing patent protection soon, Big Pharma needs new drugs -- click here.